Tax season is a really irritable time for a lot of people, simply because they can possibly end up owing the IRS, or not get back what they think they should have. It is important to know all the ways that you can make the most of your income tax refund check each year. There are so many things you can write-off that are not spelled out for you on the actual forms themselves. So, unless you are a professional tax preparer, or are extremely knowledgeable on the topic, you are possibly missing out on money every year.
Don’t miss out on your money, learn all the ways to get it back.
11 Things You Can Write-Off on Your Taxes
- Health insurance premiums.
If you are self-employed and paid your health insurance premiums out of pocket, you can write-off 100% of the costs of your premium for the year. If you are not self-employed you can still write-off your health insurance premiums. To do so successfully, they should be greater than 7.5% of your adjusted gross income.
- Being a teacher.
Educators often come out of pocket for classroom materials and are not reimbursed by the school they work for, nor the district. The IRS permits K-12 teachers to deduct up to $250 for their material each year. This may not cover the entirety of everything purchase throughout the year, but little bit helps. Just be sure to keep the receipts in a safe place.
- Job hunting.
If you lost your job and are looking for work in the same career field, you can deduct your job hunting expenses. Keep track of the transportation costs: gas, tolls, miles driven, etc. Also if you had to take a cab or ride-sharing service, also keep track of the use of those. If you had to pay to print your resume, business cards, etc. keep receipts of all of your expenses.
- Tax preparation fees.
Yes, you can write off the cost of doing your taxes every year. Whether you file your taxes yourself, go to a pop-up tax shop, or pay an online service, you can deduct the fees. Your preparation fees should be over 2% of your adjusted gross income.
- Bad debt deduction.
If you lent any money out through the course of the year, and haven’t received it back, you can write that off too. You’d need to show proof the debt actually exists, so make sure to get agreements signed by all parties involved. You will also need to show that you attempted to collect the debt from the borrower, and that there is no way the person intends to pay you back.
- Airline baggage fees.
If you are self-employed and travel for business, you can mark them as a deduction when filing your taxes. All it takes is saving your receipts.
- Work uniforms.
If you have to buy uniforms for work that you cannot wear on an everyday basis outside of work you can use their costs as a deduction. These uniforms include military uniforms, protective gear for construction workers, theater costumes, mechanics, etc.
- Home or vehicle for business use.
You can deduct the mileage and gas expenses that are a direct result of using your vehicle for work. Using your home for work, can also be deducted. Your home would have to be used as a storage facility for your product/inventory, a primary business location, rental use, etc.
- Charitable Donations.
If you donate monetary, or non-monetary gifts to charity you can claim them on your taxes, just keep the receipts. Some places may not give you a receipt for your contributions right away, but no worries, just ask.
- Senior citizen deduction.
Aging does have its benefits. You get priority boarding on flights, priority seating on planes, discounts at fast-food restaurants, and tax deductions. Seniors 65+ have a higher standard deduction.
- Unusual business expenses.
If you are self-employed and have purchased things throughout the course of the year that are instrumental to your company, and you can prove it, you can deduct it from your business’s income. Be sure to keep your receipts in case the IRS asks for proof of purchase.
Tax deductions can help you save a lot of money, and these are the ones you probably didn’t know you had the ability to claim. Don’t overpay, and itemize your deductions. These deductions, and itemizing them, will lead you to a bigger refund.