Tax Season Is Here!
With tax season starting I wanted to share some deductions that you can use while filing your taxes. I am not a professional CPA nor do I pretend to be a specialist at filing taxes but, there are some deductions you can use to ensure that you get a tax break and maximize your tax return. The following is just a list of a few tax breaks that can increase your return.
January 31st- Employers have to mail out W2's.
March 15th- Companies with LLC's or S Corporations taxes due.
April 15th- Deadline to file or postmark taxes.
1. Health Savings Account Tax Break
If you have a health savings account, a certain amount can be deducted.
2. Retirement Plan Tax Deductions
If you are paying into an IRA, 401k, 403b etc...that amount can be deducted.
3. Medical Expenses Tax Deduction
If you have unreimbursed medical costs that is higher than 7.5% of your income, it can be claimed.
4. Any Charitable Donations
Donations that you have made to organizations, churches etc... can be deducted.
5. American Opportunity Tax Credit
The cost for receiving higher education like; the cost of books, tuition etc... Also, any interest paid on student loans.
6. Child Tax or Dependent Care Credit
Fees for daycare expenses for your children, parent or a spouse.
7. Earned Income Tax Credit
This credit is for your dependent children depending on amount of children and your household income.
8. Stock Investments
Remember to report any investments in stock. Even if it was a loss.
There are a ton of deductions you may qualify for. I would suggest that you do a little research before A. Filing your own taxes or B. Paying someone to complete them for you. Every penny counts!
O'Connell, B., The Street.com, 29th, Jan. 2019.
10 Key Tips For Filing Your Tax Return.(2019). Retrieved from http://www.360financialliteracy.org.