In New York in the late 1800s, the very first Labor Day was celebrated as a time to observe the efforts of the work force helping to build the growing United States.
Much has changed since those early days, but in an effort to celebrate working Americans let’s celebrate Labor Day by finding ways to save money and lower your taxes.
Keeping Your Money is a Great Feeling
For better or worse, income taxes keep this country running. But that doesn’t mean you can’t get excited about finding ways to keep more of your hard-earned money away from Uncle Sam and in your own pocket.
If you’re headed back to college this fall, be sure to keep track of your educational expenses. Things like tuition, books, and supplies, may be tax deductible.
If you’ve moved on from college and joined the work force, keep these deductions in mind: contributions to your Traditional IRA, moving expenses, and student loan interest paid. These deductions can be made whether or not you itemize your taxes.
If you can claim mortgage interest, charitable contributions, tax prep fees, work-related expenses that go unreimbursed, and even losses on your Traditional or Roth IRAs, you can lower your taxable income.
End of the Summer Sales
With Labor Day comes back-to-school sales and clearance bargains. Although your kids might be sad to say goodbye to their summertime freedom, as parents you can rejoice in the savings for their school-related costs.
From clothes to bags and even school supplies, the Labor Day weekend usually brings some great deals for smart shoppers to load up on necessities without unloading their bank accounts.
Not only can you save money during the holiday sales, but if you’re a school teacher dipping into your own pocket to support your classroom and your students, you may still be able to deduct what you spent on your class supplies as an unreimbursed employee expense.
More Ways to Save on Taxes
If you’re looking for a new job, keep in mind that some of your job-search expenses may be tax deductible.
Travel for job searches, including airfare, vehicle mileage, and even meals and lodging, can all be tax deductible as long as finding a new job was the main reason for the cost of your travel.
You also may be eligible to deduct the cost of creating and mailing your resume as well as job placement fees that you might incur while working with an employment agency.
If you have kids and need to pay for childcare while you work, be sure to remember your day care expenses. You may be able to claim the Child and Dependent Care Credit on your taxes if you paid someone to care for your child, or any other dependent you claim on your taxes ?
Wherever you find yourself this Labor Day, there’s no shortage of ways to save money.