Life is expensive, we all know that. So, for those of you who agree with me on that statement, you will also agree on this: the only thing worst than paying taxes is inadvertently paying more than you have to. Here at America Top 10, we will tell you some of the commonly overlooked personal deductions for individuals. Why? Well these can all add up to big savings on your taxes or it can also help maximize your refund. Tax deductibles you should know include:
Tax Preparation Fees
You can actually deduct the cost of tax preparation on your Schedule A. If you paid taxes and used a credit or debit card to do so, you can also deduct convenience fees. This deduction doesn’t apply if you used a free online tax preparation software or service.
Did you know? Hobby expenses can be claimed as “other miscellaneous deductions.” While your hobby may not actually qualify you for small business tax deductions, you can deduct some of its expenses. However, you can only deduct as much as you generated in income from your hobby. This helps recoup some money if you have a small business that has gone three years without a profit – at which point the IRS categorizes your operation as a hobby.
Most of us know hat cash or goods donated to charities are tax-deductible. But not everyone knows that mileage driven as a volunteer is also deductible. If you drive to your volunteer location or run any errands while volunteering, keep a log of your miles. You can deduct 14 cents per mile plus parking and toll fees. You can also deduct the fees you pay to use public transportation to go to and from the volunteer location.
Losses Due to Theft or Destruction
In addition to deliberate property damage, this covers damages that arise from natural disasters too. Like, if your car was hit by hailstones or you lost siding in a natural disaster, you can deduct the amount of the loss that you weren’t reimbursed by your car or homeowners’ insurance company.
Another surprising deductible. This covers any form of lessons or classes that involve honing skills or continuing education offered in your local community college. Any expenses incurred may qualify for the Lifetime Learning Credit, which can net you up to $2,000 in tax credits. You can get this credit for classes taken by your spouse or any dependent as well, as long as you aren’t part of an employer tuition reimbursement program.
Breastfeeding Equipment and Pumps
An IRS ruling has declared breast pumps and other breastfeeding equipment to be part of the medical equipment category. This means that breastfeeding equipment of any kind can be deducted on Schedule A. Since these materials are often expensive, adding their cost to your other medical expenses can help you achieve the required total before deductions are meted out.
But wait, there’s more! According to Mark Kohler, CPA, Attorney, and Author at Entrepreneur.com, there are some other possible deductions for taxes too. Read his article to find out more.