April brings showers, flowers…and taxes! The tax filing deadline is here, and if you’re in need of motivation, we have 10 money-saving tax deductions (and credits) to keep in mind. They just might motivate you to get started!
- Education Expenses: Tuition is deductible for full-time students, but even casual learners can get a tax credit. The Lifetime Learning Credit of 20% of up to $10,000 of tuition and fees is available even if you aren’t pursuing a degree.
- Job Hunting Expenses: You may be able to deduct the cost of travel, meals, resume preparation, postage, career counseling and employment agencies, to the extent that they exceed 2% of your income, even if you don’t end up changing jobs.
- Health Insurance: If you are self-employed, you can take a deduction for the health insurance premiums you pay for yourself and your family. If you are not self-employed, health insurance premiums paid after taxes, along with your other medical expenses, are tax deductible if they exceed 7.5% of your income and you itemize your deductions.
- Moving Expenses: Your moving expenses are tax deductible if you change jobs and the distance from your old residence to your new job site is at least 50 miles more than to your old job site, and you work at least 39 weeks during the year after the move.
- Party Expenses: The cost of parties are tax deductible if they are related to your business. If you rewarded your favorite customers with a party you may be able to take this tax deduction.
- Home Office: If you use part of your home regularly and exclusively to perform administrative or managerial activities for your business, you can claim a home office deduction for a portion of utilities, rent, mortgage interest, depreciation, cleaning and the like based on the square footage of your home used for your business.
- Personal Bad Debts: If your best friend borrows $10,000 from you and then skips town, you can deduct up to $3,000 of this non-business bad debt as a short-term capital loss on your tax return in the year the debt becomes uncollectible.
- Points Paid on your Home Loan: If you paid points when you bought a home, they are deductible in that year. Points paid to refinance a loan must be written off over the length of the loan. If you refinance again, don’t forget to write off the remaining points in the year you refinance.
- Mileage Expenses: If you use your vehicle for business, whether you are self-employed or an employee, you can deduct your mileage (53.5 cents per mile in 2017). If you work at more than one job, the cost of traveling between job locations is tax deductible as well.
- Medical Costs: The cost of exercise equipment or purchasing and maintaining a spa or swimming pool may be tax deductible as medical expenses if your doctor recommends them to mitigate a medical condition.
TurboTax will ask you simple questions about your life to help you claim the tax deductions and credits you’re eligible for based on your entries. TurboTax checks for more than 350 deductions and credits so that you can keep more money in your pocket! Get started now.
If you have questions, you can connect live to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered.