You are sitting at your home office or your kitchen table. You’re sweating bullets and you’re dreading the next several hours. That’s because you’re about to file your taxes. The process is daunting and can sometimes just be downright cruel and unusual punishment. Any possible tax breaks feel like a small victories; a reward for all of your hard work and bravery.
What if I told you there might be tax breaks you’re missing out on? When it comes to filing, there are breaks many Americans simply don’t know about. These breaks are often overlooked, but here you’ll learn what they are and how they can save you money.
Dependents
Many people are under the assumption that they can only file their children as dependents, but that’s not the case. Dependents can be your children, grandchildren, and even your parents as long as they’re living with you. You can even add anyone who lives with you and is making less than $3,000 a year, even if they are not your relative.
Medical Expenses
New tax laws state that medical expenses above 10% of your annual income are tax-deductible, but seniors can still use the 7.5% law for their taxes. Additionally, if you’ve paid others’ medical bills, you can get a tax break.
Mortgage Points
If you bought a house and paid points on your mortgage, you can get a tax break. You can also get a break for a refinancing, as long as you spread your deduction across the new mortgage term.
Losses Are Wins, Too
Writing up your losses, including a theft, flood, or fire are also tax-deductible.
Divorce Deductible
If you went through a divorce and you’ve paid your ex in cash under divorce terms, you can get a tax break. Even if the divorce was nasty, you can still win.
Moving for a Job
If you’ve moved more than 50 miles to start a new job, your moving expenses are tax-deductible.
There are many ways in which you can save on taxes. Although it may not be exciting to do your taxes each year, these potential savings offer some comfort and a bit more cash in your wallet. If any of these breaks apply to you, be sure to let your local CPA know.
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