If you want to save money while also being a responsible citizen filing taxes, it’s important that you educate yourself on tax deductions. There are available deductions for many different reasons and let’s not forget, there are also tax credits that could help you save money as well. In order to not miss them when filing, here are a few tax deductions to keep an eye out for:
Look into state sales tax deduction
If you live in a state without income tax, you could be getting some deductions related to state sales tax. Whether you’re filing alone or with Intuit Accountants, take time to figure out how you can get deductions based on large purchases. A professional will be skilled in helping you know exactly how to make this happen, but you can also use a sales tax deduction calculator or use your receipts on schedule A. It’s a process, but one that can save you a lot of money, with or without state income tax.
Check out a home office deduction
Another really great deduction to consider, especially if you’re self-employed or work remote, is the home-office deduction. You can use an actual expense method to deduct while filing taxes or use a simplified method.
Actual expenses will include things like rent, mortgage interest, maintenance, etc., while a simplified method will have you deducting $5 per square foot. This is definitely one of the best deductions that you could get when it comes to key tax deductions so don’t sleep on the possibility of including it in your tax return.
Don’t forget job search expenses
If you were looking for a job over the past year, guess what? This can also help you to get a deduction; a deduction that is probably going to be a welcome one if you were having to look for a job this past year. Whether you had to hire a career coach to help you navigate the world of job searching or you spent money going to interviews or updating your resume with a professional, all of this money can go towards a job search expense that can be included in your deductions. Although this isn’t possible in every type of scenario, due to the TCJA, you can see if it applies to you as a self-employed individual or in certain circumstances that include specific itemization.
Make that student loan work for you
Anybody that has ever taken out a student loan to study knows that it’s a lot of money that hits your credit score. The payments can seem overwhelming and it’s a lot to deal with. However, with a student loan deduction, you can at least know that you could be saving money thanks to those student loans. You can actually deduct up to $2,500 and use the form 1098-E to do so, so if you’re looking to save money and are a student, consider using this to your advantage.
Mileage expenses
If you use your car for work or even simply use it to get to work, you could be using the mileage expenses and other car-related expenses in your deductions. Using a mileage log and when filing your return, fill out schedule C as a self-employed individual or Schedule A when itemizing your expenses. If you’re not quite sure how to go about this, consider working with an accountant who can help you do it right. Additionally, make sure you keep track of your mileage for next year if you didn’t do it this year.
In Conclusion
Filing your taxes can be challenging but knowing how to get money back or save on what you owe can make it easier. With these deductions, you can save money when filing. As every taxpayer knows, saving money when you owe the government feels good.
