The key to lower taxes and maximum tax relief is deductions. As a taxpayer, make sure you know your most recent deductions and include all that apply to you on your tax return. Don’t forget these oft-forgotten deductions that can be included on your tax return:
1. Charitable Contributions – While you’re not likely to forget the big donations you’ve made, the smaller ones add up. If he volunteered to be a makeup artist at a function, remember to deduct the cost of any makeup items he used.
2. State sales tax – You can deduct the full amount of state income tax or sales tax you paid the previous year. If no state or local income tax applies in your area, deduct all of the sales tax paid.
3. Medical expenses – When calculating your adjusted gross income, if your medical expenses for a year add up to 7.5% of this adjusted gross income, you can deduct it from your taxable income.
4. College Tuition – A deduction of $4,000 is allowed for college tuition for dependents, spouse, or yourself. When a taxpayer’s income exceeds the limit to qualify for the Hope or Lifetime Learning credit, this deduction is very helpful.
5. State taxes paid in the previous year: Additional state taxes paid in the previous year can be deducted from the current tax return. State income tax taken from your salary can also be deducted.
6. Cost of Preparation of Income Tax Forms – Includes the cost of services or fiscal software acquired. You can claim it in the tax year you paid them
7. Jury Pay – There are employers who pay employees full salary when said employee is on jury duty. These employers ask the employee to waive jury fees. In such cases, a person can deduct the entire sum from this confiscated amount.
Each of these deductions adds up to significant tax relief, so write them down and claim all that apply to you.