Tax Breaks That Are Often Overlooked
Tax breaks are a great way to make your tax return bigger and put more money in your pocket. Many people use their refunds to spend, but they can also be used to grow their emergency funds. However, you may be missing some tax breaks that could make your refund much bigger.
Moving Expenses
When moving to take a job, you may be able to write off the moving expenses. Recent college graduates who move to accept their first job can also write of their moving expenses. This can be a big tax break. Moving expenses can be high in some cases, especially if you have to travel a long distance.
Job Hunting Costs
Those who are job hunting across the country can deduct the expenses incurred as a tax write-off. However, college students searching for their first job don’t have the same benefit. Costs included are resume preparation and employment of outplacement agencies. These costs have to exceed 2 percent of your adjusted gross income to qualify.
Education Expenses
If you are in college or are paying for a child to be in college, you may qualify for education expenses deductions. The tuition and fees deduction can help reduce your taxable income by up to $4,000. The Lifetime Learning Credit can help you receive up to a $2,000 credit.
State Sales Taxes
If you live in a state that doesn’t have an income tax, you can deduct sales tax, according to Kiplinger. Taxpayers typically have the choice to deduct state and federal income taxes or state and local sales taxes. All people have the opportunity to deduct sales tax, but it makes more sense if you don’t have income tax taken out of your paycheck.
Out-Of-Pocket Charitable Donations
Not only will you be helping people out making a charitable donation, but you can deduct them from your taxes. In addition to direct contributions, there are other donations that can deducted. If you made a dish for your local soup kitchen, the expenses incurred can be deducted. Stamps bought for a school fundraisers mailing can also be deducted. It is important to keep your receipts because you’ll need to document your expenses.…