No one likes to feel like they’re missing out. Especially when it comes to opportunities to pay fewer taxes. As this year’s tax deadline approaches, let’s take a look at some of the most commonly missed tax deductions.
Tax deductions like home mortgage interest, taxes (state and property), and charitable donations surely make this list. But that’s likely not what you’re interested in. You want to know about those less-publicized tax deductions that you might be missing.
Above-the-line Deductions That Help You Save:
While every missed tax deduction is potentially a missed opportunity to save on your tax bill, some deductions are also great savings vehicles designed to help you in other ways. I’m talking about the deductions for contributions to a Traditional IRA or Health Savings Accounts.
Some of the other above-the-line tax deductions that you don’t want to miss include:
- Educator Expenses
- Student Loan Interest
- Moving Expenses
Itemized Deductions:
When you file your tax return, you have a choice to use the standard deduction or itemize your deductions. Many people mistakenly take the standard deduction each year when they could be paying fewer taxes by itemizing their deductions. If you’re itemized deductions are more than the standard deduction, then you should itemize. For most people, the 2016 standard deduction is:
- $6,300 Single or Married filing separately
- $12,600 Married filing jointly or Qualifying widow(er) with dependent child
- $9,300 Head of household
If you’re close to being over the standard deduction threshold don’t forget your receipts for :
- Medical Expenses
- Unreimbursed Employee Expenses
- Charitable Donations
- State Sales Tax
This may help push you over the threshold and maximize your tax refund when you sit down to prepare your taxes.
Don’t worry about figuring out whether or not you’re eligible to take the standard deduction or itemized deductions and forgetting these tax deductions and credits. TurboTax will ask you simple questions about you and give you the tax deductions and credits that you are eligible for.