3 Tax Deductions You May Not Know About
Tax season can be stressful. However, many people look forward to a tax return. Some people even depend on it (not recommended). Tax software can only get you so far, you have to know how to save money for yourself. Deductions and subtractions are a great way to offset some of your taxable income.
A charitable donation does not have to be huge to make a difference during tax season. When you donate to a charity such as the Salvation Army or Goodwill, make sure you get a voucher and save it with your tax records. Also, this deduction is not limited to donating physical items. If you do charitable work, you can deduct items and consumables bought and used. You can also deduct mileage (14 cents per mile) for using your personal vehicle. Did you incur any toll costs? Deduct it!
State Taxes Paid in the Previous Year
If you are like me, you have owed the money to the state a time or two. Did you know you can deduct that on your taxes the following year? You may also be surprised to know that you can deduct income tax withheld by the state in the previous year. It should be noted that the new tax law limits your deduction to $10,000 per year and this amount includes state income tax withheld, sales tax, and property tax.
Jury Duty Pay Given to Employer
More and more often, employers offer their workers paid jury duty. However, they demand that the employee turnover the money they receive from the government for participating. The money you receive for jury duty from the government is taxed as income before you give it to your employer and is treated like taxable income. Because of this, you are allowed to deduct the amount you give to your employer on your taxes.
Notable Deductions That Are No Longer Available in 2018
All good things must come to an end. Some more notable deductions that are being… well… deducted are:
- Deductions pertaining to employee expenses which are unreimbursed;
- Moving expense deductions;
- Alimony deductions;
- Personal exemptions (an exemption that allows taxpayers to subtract $4050 from their personal income for each dependent).
It is up to you to make sure you are getting the biggest tax return possible, but taxes can be confusing. If you need help because you owe the IRS, contact Elias Dsouza of Dsouza and Strachan Lawgroup. Elias has the knowledge and expertise to help you navigate these complex issues.