With the October 15th deadlines behind us, there are a couple months until all of the CPA’s in Indianapolis will be in the thick of the busy season. So, now would be a good time to speak with your CPA about ideas for saving taxes this year.
With that said, here are 10 great deductions that individual tax payers often forget:
- Expenses Related To Charity – Yes, most taxpayers know they can deduct the donations made to charitable organizations. However, many do not realize there is also a deduction allowed for expenses related to doing charitable work.
- Moving Expenses – Moving expenses can be deducted when relocating for a new occupation, and they can also be deducted for relocating after college. These deductions are easily forgotten, but they can be significant.
- Job Searching Costs – The expenses related to looking for a new job – while currently employed – are deductible if the taxpayer itemizes (and if the total miscellaneous itemized expenses are over 2% of gross income.)
- Military Reserve Travel Credits – If you are a reservist or member of the National Guard, you may be able to deduct your travel expenses. The rule is that you must have traveled over 100 miles per day and stayed overnight for training.
- Childcare Expenses – If you have to pay someone to watch your children during the day while you work, you may deduct those expenses. There may also be deductions if you are caring for dependent adults.
- Refinancing Your Home – If you use the proceeds from refinancing your home to make improvements, you may be able to deduct points paid on the loan.
- Medical Expenses – Your medical costs must exceed the 7.5% of AGI threshold in order to be deducted, but there several expenses that you should not forget to reach this amount – such as travel expenses to and from treatments.
- Retirement Savings – With the Retirement Savings Contribution Credit, you can deduct as much as $1000 in contributions. This is specifically designed to encourage those with lower-to-moderate income to save.
- Education Expenses – If you are getting any form of education, you should look out for several opportunities to save on taxes. Some of these opportunities include the Lifetime Learning Credit, American Opportunity Tax Credit, etc.
- Energy Efficient Home Improvements – There are credits worth up to $500 for energy efficient home improvements
If you have any questions or concerns about any of these items, feel free to contact Larry Marietta, CPA at 317-216-1040. The sooner the better.