Posted by Fred Lake

Unusual Tax Deductions - Some Taxes Which You May Not Know About

Unusual Tax Deductions - Some Taxes Which You May Not Know About

There is always a chance that you pay for everything but later onwards you realize that there are certain tax deductions to which you were eligible. These unusual tax deductions will surely save up a considerable amount of your money, generate fewer and lesser bills and make you want to invest that saved money somewhere else. 

There are many kinds of unusual tax deductions some of which we will be discussing here in this article. Let us now tell you about some unusual tax deductions. You should not and never overlook these tax deductions which we are mentioning below.

Online sales tax 

Online shopping is an excellent platform for you to get away with paying many of the taxes that you would have to pay if you go for shopping physically. When you go for shopping physically, you are handed over a receipt of the total bill on which there is a 13 or 14 percent GST tax charged apart from the total bill. However, if you shop online, you just have to pay for the price of the item that you have bought and nothing else. 

Online shopping can seriously save you from a good amount of tax which would otherwise have been impossible had you gone to shop physically.

Charitable deductions 

Charitable tax deductions are applied on cash and money. They cannot be applied on material things such as clothes and furniture etc. however, if you want the charitable tax deduction to be applied, you need to make sure that the items as well as the clothes should be in an excellent condition and that you have the bill of the stuff. The receipt is very important and without it there will be no other way to claim the tax deduction. 

Babysitter/Nanny taxes

Any babysitter or nanny that you will hire to take care of your baby and the expenses that you make for your babysitter come under the statement of tax deduction. For instance, you buy a new bed for your babysitter to sleep on, some other kind of furniture for the use of the nanny or even a telephone which you buy for the use of the nanny to call him/her from your workplace to ensure about your child’s well doing all come under tax deductions. 

Lifetime learning

Lifetime learning Tax credits can be applied on education and this is only applicable if you are studying in school, are a student of that particular institution and this is only applicable and eligible if you are studying at the moment. 

The two student loan tax credits which are listed by the department of education include the lifetime learning credit and the American opportunity credit.

The lifetime learning credit can only be claimed while the student is studying. Once the student is out of school, it cannot be claimed and the credit is worth up to dollar 2000 for each student which is why it is much better to claim this while the student is already studying. 

The American opportunity credit can be claimed till 4 years and is worth till dollar 2500 for every student. Parents can take this credit while their children are still studying and use it for their own children suture use. 

Social security tax deductions

More than 80 percent of the social security income is taxable and that can be quite a challenge for you that you will have to meet. However, it also applies on the fact that the amount that you earning from your income is as much for the social security tax to be applied. 

Wrapping up

So, these were some of the most unusual tax deductions of which you can take great advantage. You just need to have a look out for some beneficial tax deductions and then you can always claim the tax deductions with the help of submitting the bill or the receipt. It is very important that you keep record of the bill and the receipt so that when you go to claim the tax deduction, you do not face any problem.

Fred Lake
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