Deductions on your Tax
The tax season is fast approaching. This is among those periods within the year that are quite dreaded. It is important for you to be familiarized with the various potential tax deductions. We have a couple of tax deductions that will be of great value to you at the end of the day. The following are some of the most common deductions to take into account.
Reinvested dividends are quite common. This is actually a bundle that will save you a lot. It goes without saying that dividends will from time to time be reinvested back into a fund. You can consider the services of various tax review experts for a clearer understanding. The EITC can also be taken into consideration. It is imperative to mention that a good number of people hardly take advantage of this since they are barely conversant with it. You will also have the room to opt for refinancing mortgage points. You will be free to go for this credit in the event that you have refinanced your mortgage during the year. You can also go for the state sales tax. You will actually have to choose between the local state taxes and the income tax. You will often be advised to go for the income tax. However, it will be possible for you to include any state sales tax paid upon the purchase of a car or even a boat. You will also be allowed to deduct the charitable donations that you have made so far.
The parental student loan interest will often be deductible. You will find that parents that pay back student loans for their children will often be eligible for a deduction of up to 2500 dollars. You will find that job moving expenses will be subjected to deductions too. It is necessary to mention that you will get a deduction of 23 cents for every mile in the event that you are moving over 50 miles away. Then there will also be a deduction on your health insurance premium. This is particularly in the event that your medical expenses take over 7.5% of your gross income. It is possible to deduct the whole cost of the premium if you are self-employed. You can also be assured of teacher deduction in the event that you are a teacher.
You will also be assured of deduction of babysitting charges if you were on a charity drive. This is only if you prove that you were in a charity donation. You will also note that lifetime learning will be considered. This is applicable regardless of the age. Then there is the social security for self-employed people. You will be allowed to make a deduction of 7.65% on the amount. You can also enjoy deductions on gambling loss, off the beaten path as well as the residential energy credit.
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