Every year there is $1.2 trillion dollars worth of tax deductions, but so many people aren’t taking their portion because they are taking the easy way out when it comes to their taxes. Often times, the normal tax payer leaves deductions untouched that could make a huge difference in their return, and they aren’t even aware it’s happening.
5 Tax Deductions You’re Leaving on the Table
To help you pick up money left on the table we are going to through 5 important deductions you might be leaving on the table:
1. State Sales Tax
Have you ever wondered why Grandma kept every last receipt? It was for the taxes! Everything that you purchase has a state tax put on top of it, and the IRS sees that as a deductible. They go so far as to give you a state to state calculator to help you out. Go buy a boat, a car, or a plane, and you can still deduct the state sales tax all the same.
Bonus* If you owed money last year, you can deduct that too! Isn’t that nice.
2. Jury Pay Paid to Employer
Every now and then, an employer will pay you in full, but still withhold your jury pay tax. If you happen to fall into this boat, good news! There is a deduction waiting for you. You can deduce the money if you let the employer keep it. The IRS just demands you record those numbers.
3. Relocation Expense from Your New Job
You got that brand new job, but you have to relocate. That’s ok because the IRS helps you pay for that huge expense. By deducting your relocation expenses, you can get a bit more back on your return. If you have moved more than 50 miles for your job, you can deduct 23 cents per mile, parking fees and tolls.
4. Refinancing Mortgage Points
That $1000 down for those extra mortgage points won’t seem so bad when I let you in on this secret. You can write those “bonus” points down for another great deduction. If you have a 30-year mortgage, you get 1/30th it back each year. $33 dollars a year might not seem like much, but it’s the small things that start to add up.
5. Student Loan Interest
Parents! This is a special one for you. If you are paying for your kid’s schooling, you can deduct the interest you are paying back to the loan as a gift to your children. That means you can qualify to deduct up to $2500 of student-loan interest paid by Mom and Dad if that child is not claimed as a dependent.
Conclusion
There are tons of small tax write-offs that can slip through the cracks, especially if you aren’t a trained professional. Tax programs are great, but they are sure to miss a couple of obvious deductions as well. Taking the time to sit down with a tax professional is more than worth the upfront cost because your return will reflect so much more.
Looking for more tax advice? You can contact Bell Solutions LLC for more information here at our website.