Tax season is a stressful time for many people. Unfortunately, many individuals could be denied thousands of dollars because they are not aware of some deductions that are available. These expenses might not seem like much, but they do add up to get you more money. Therefore, here are 10 little known deductions that could save you thousands of dollars.
Overlooked Federal Tax Deductions
1. Medical Insurance Premiums
It seems that the cost of health insurance keeps rising, so it seems only fair that you could get a deduction off of it. If you have gone over 10% of your adjusted gross income or 7 ½% if you are married.
2. Education Expenses
An educator, or teacher, can spend hundreds of dollars on expenses for items related to the job. If your occupation is an educator, you automatically qualify for $250 in reimbursement expenses.
3. Moving Expenses
If you are transferred to a new job that is a certain distance from your former job, you qualify for a deduction. You can deduct the cost to move your personal items, and you can include storage rental as well as gas, oil, and parking fees.
4. Theft or Destruction Losses
If a natural disaster or robbery occurs on your personal property or your business property, the damages are tax deductible. You can deduct appraisal fees, the cost for incidentals, etc.
5. Allowing a Friend to Stay in your Home
If you let someone you know sleep on your couch because they need a place to stay and you have supported them somewhat, then you might actually be able to claim them as a dependent.
6. Job-Hunting Expenses
If you are in search of a job, you can deduct the fees you pay while searching. You can deduct things such as expenses used to mail your resume, travel expenses, job website fees, etc.
7. Bad Investment Deduction
Unfortunately, spending money on an investment will not insure financial gains. If you lose money in an investment, you will not get that money back. However, if you can prove to the Internal Revenue Service that at the beginning of the year, the stock had value, you could get a deduction on your income taxes.
State of New York Tax Deductions
1. Tax Credit on Property Tax
Real estate taxes paid on property that is valued less than $85000 can receive a tax deduction. Renters or homeowners could be eligible for this deduction.
2. New York Child Credit
If you are a parent or guardian of a child and your adjusted gross income is less than $75,000 or $100,000 for married couples, you will get a credit for each qualified child.
3. Deduction for College Tuition
Certain education expenses can get you a tax deduction. We can help you decide which tuition credit available is the best for you.
You want to get the most out of filing your income taxes, so you want to make sure you know all available deductions available to you. We can help you get the biggest possible refund and pay the least amount in taxes. Call us today for a FREE tax preparation consultation at (855) 829-8477.