Tax time is right around the corner whether or not you are prepared for it.
We all know a few people who are never prepared for tax time. But even if you feel like you have prepared for tax season, you might not be as ready as you think.
The truth is that there are tons of tax deductions you might qualify for. With so many, it can be hard to keep track of all of them. To help you out and make sure you save as much money as possible, here are at 11 tax deductions you might be overlooking.
1. Moving Expenses
When you relocate because of your job, you might be able to claim those costs as a deduction when you file your taxes. Of course, you must meet certain qualifications.
2. Student Loan Interest
You can deduct the interest you paid for your student loans, or the interest student loans of any dependents. There is a cap of $2,500 and you have to have an adjusted gross income of $80,000 or less to qualify for some of this tax deduction.
3. Membership Dues
If you pay membership dues that help you conduct your business, you might be able to deduct them. Once again, you must meet certain guidelines to qualify for this deduction.
4. Home Office Space
If you spend any amount of time working from home, you could qualify for a tax deduction even if you have a traditional job and work at an office part of the time too. A portion of your real estate taxes and your mortgage may be claimed as a deduction. But, before you claim this deduction, make sure the office space at your home qualifies. It must be a dedicated office and not an office-slash-something-else.
5. Job Hunting Costs
Did you have to look for a new job this year? If so, some of those expenses might be used as a deduction to reduce your tax liability for the year. The new job must be in the same line of work you were in before in order to take advantage of this tax deduction, and there are other criteria to meet as well.
6. Internet & Phone Charges
Running a business might qualify you for a tax deduction on at least a portion of your internet and phone charges.
7. Work Related Educational Expenses
If maintaining your current job means you have certain educational requirements you must meet, you might be able to deduct those expenses from what you will owe in taxes for the year.
8. Tax Preparation Expenses
Paying to have your taxes done last year means you can deduct that expense from your taxes for this year if you meet the proper criteria.
9. Health Insurance for the Self Employed
Self employed people usually have to pay a very high fee to have health insurance. However, the good news is that you may be able to deduct some of these costs from your taxes and reduce your overall tax liability.
10. Business Books and Subscriptions
Some books and subscription you might have for business purposes might be tax deductible, but be sure to save your receipts for these purchases.
11. Excess Social Security Taxes
When you work for more than one employer, they do not co-ordinate on the social security taxes withheld from your paychecks. This means you could be paying too much if your combined gross income exceeds a certain amount. Any overage can be claimed as a tax credit.
These are just some of the tax deductions and a credits you might be overlooking. Although they may seem small, they can add up to save you a bundle on your taxes this year. So, even if you do feel like you are prepared for the upcoming tax season, check into the deductions you could be missing out on before you send in your return.
Have you ever used any of these tax deductions? What other tax deductions have you used in the past?