3 Tax Deductions And Credits You Didn't Know You Could Take
As tax season approaches, many people are wondering what they can do to save money. Luckily, there are a couple things you can do to make sure that you are keeping more money in your pockets. One of the best ways to do this to properly utilize your deductions. Here are a couple deductions that many people don't know about, which causes them to miss out on great opportunities.
1. Medical Expenses
Throughout the year you are going to have a lot of medical expenses. You will probably pay your medical insurance, dental insurance, medical bills and even for medical supplies. Each time you purchase one of these things or pay a premium, you need to keep track of it. All of this can be deducted on your taxes. This is for anyone who lives in your house, including your spouse and dependents.
It should be noted that if your employer pays your medical insurance, they are probably already taking the deduction, so you may not be able to utilize the deduction for the actual premiums. However, you can still write off all other medical expenses.
2. Moving Expenses
If you have to relocate for work, you can write that off. Think about all the costs that go into a move: the moving van, boxes, gas, a hotel, food, and even hiring a moving company and/or extra labor. All of this can be grouped into your moving expenses and can be deducted at the end of the year.
In most cases, the move has to be for legitimate work. If you decided to relocate for a change of scenery or just moved across the neighborhood, you may not be able to deduct that. But moving cross-country because you lost or gained a job or if your present employer made your relocate, you can write it off.
3. Education Credits
Going to school can be expensive. During this time, a lot of people are taking out loans and not able to earn much money because of the time commitment to their schooling. However, each year that you are enrolled in an accredited college or university, you can claim it and receive an education credit. There is a limit to how many years you can take the credit, but there is no reason that you shouldn't take the credit until it runs out.
By understanding these things you can know how to save money on your taxes. For more information, speak with a tax preparation professional.