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Posted by Tiffany Gaskin

Tax Deductions You Should Never Lose

Tax Deductions You Should Never Lose

Double your tax return with these credits!

What's the sweetest thing about doing your taxes? Watching the amount you owe drop drastically and the amount you get back skyrockets!

But you may be able to increase the amount you get back even more. It's about claiming the right credits and deductions.

Quick fact: A tax credit is a money deducted from the total amount of taxes you owe the government, while a tax deduction reduces the amount of taxable income.

The problem is that there are several deductions to follow, and it's easy to miss a few. But that's a rookie mistake. So here we highlight five common tax deductions you need to know and should never lose!

Home Office Deduction

Calling all entrepreneurs and home-based entrepreneurs! Did you know you can be eligible to deduct certain business expenses if you use part of your home as an office?

The home office deduction is for owners and tenants who use part of their home as their principal place of business. This area of your home should be used regularly and exclusively for business. Unfortunately, working at the kitchen table will not give you this deduction. But if you have a spare room that you've converted into an office, you might qualify.

You can deduct expenses that are related to the upkeep and maintenance of your office space, including repairs, insurance, and utilities.

Deduction of charitable contributions

It pays to be generous. The Charitable Donation Deduction allows you to deduct money sent to qualifying charities from your taxes.

A charitable contribution is an elective donation or gift to a charity that is made without receiving or expecting anything in return.

Eligible charities include religious, educational, scientific, literary, or non-profit groups working to prevent cruelty to children or animals.

Student loan interest deduction

If you have studied in the United States, you know that it is expensive. It is very expensive. Plus, not only do you have to repay your student loans, but you also have to pay them back with interest.

So if you pay interest on your student loans, be sure to deduct it on your tax return. Each year, you will receive a 1098-E student loan interest payment statement from your loan officer detailing the amount you have spent on interest.

Deduction of medical and dental expenses

You can deduct eligible medical and dental expenses that exceed 7.5% of your adjusted gross income. The following are examples of eligible expenses:

  • Pay to participate in a weight loss program

  • Payment of fees for doctors, dentists, surgeons, etc.;

  • Payments for acupuncture treatments

  • Payments for dentures, prescription or reading glasses, and contact lenses

  • Payments for hospital or nursing home care

In addition, there are many other eligible expenses. If you're unsure if your specific medical or dental expenses are eligible, you can consult a tax professional to be sure.

Sale of Home Deduction 

If you sold your home, the home sale deduction allows you to exclude the first $250,000 of your income and avoid paying taxes on it. If you file jointly as a couple, the exclusion increases to $500,000.

Considering that the sale of your home will greatly increase your annual income, this is a deduction not to be missed! Otherwise, the amount due will also increase significantly.



Tiffany Gaskin
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