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Best Deductions for Your Tax Return

Best Deductions for Your Tax Return

Everyone wants to save money when it comes to the tax season. Paying into the IRS is not a fun experience and most of us will do almost anything to avoid that big tax bill at the end of the year. While you may try to work things out through the year in order to save some money, one of the best ways to reduce your tax bill during tax season is to find some of the best deductions that you qualify for.


There are many different deductions that are available to the American taxpayer. But all the tax laws and other issues are going to make it hard to understand what all these deductions are about and how they pertain to you. With the help of the right tax professional from the start, you will be able to find each and every deduction that you qualify for, saving a lot of time and money on your tax return this year. Here are some of the best deductions that are going to save you a lot and help you get ahead during tax season.


Medical Deductions

 

Medical deductions are probably the least used deductions that people can go for. This is most likely due to the fact that most people have no idea of how they work, but that is where your tax professional will be able to come help you out. There are certain medical supplies that you will be able to deduct, such as the cost of hearing aid batteries and the supplies for your breast pump, as long as your insurance or some other provider is not reimbursing you for the costs. If you get some home improvements done to your home for medical reasons, you could also deduct some of these as well.


Some of your regular medical expenses can be deducted as well, but the amount is going to vary based on how much income you make. In most cases, you can deduct your medical expenses if they go above ten percent of your income and you will only be able to do the amount over the ten percent. Make sure to work with your tax professional to find out how much you are able to deduct when it comes to your medical expenses.


Education Deductions

 

There are a few things that you are able to deduct when it comes to the cost of your education. If you spend your own money, outside of scholarships and grants, on your education, you could get a deduction for this. The money you pay needs to be for tuition and fees as well as any supplies and books that help you to attend the school. You are not able to deduct the cost of room and board, even if you live on campus.


In addition, it is possible to deduct some of the student loan interest that you pay through the year, even if you are still in school. This has a limit of $2500 per year, but it can really lower your tax bill and even help you to pay off those student loans faster than before.


Children Deductions

 

Having children can be expensive. While you may love their company and all of their crazy antics, coming up with the money to give them food and clothing as well as to take them to a daycare or anything else that is needed can quickly add up. Luckily, there are a few deductions that you can qualify for that help to reduce the amount that you have to pay out of pocket for giving your children a great life.


First off, just by having children you will be able to get a deduction. This deduction is going to be based off of your income, but by providing their social security numbers, you could save up to $1000 per child on your tax return. In addition, if you pay for daycare or other childcare during the day while you work or look for work, you can deduct some of these expenses on your tax return as well.


Home Office  Deductions

 

Working from home can help you save a lot of money. Some people will work from home a few days a week rather than commuting to work, saving time and helping them be more efficient compared to spending all that time on the road. Others are going to be self-employed and will work their whole businesses from a home office, making it really important to their income levels.


No matter the reason that you work from home, it is possible to get a deduction at the end of the year based off this home office. You will need to do some calculations, such as how much of the home is used as office space and how often you use this as an office, but you could save money on your internet, phone, and even utilities. In addition, if you purchase some supplies for your business, such as a computer or other office supplies, these can be deducted as well.


When you are ready to find all of the deductions that you qualify for and to save more money than ever before on your tax return, make sure to contact a tax professional in your area. They will be able to answer all of your questions and ensure that you get the best care possible right from the very start.

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