Tax season is finally here! While some people scramble at the last minute to meet the April 17th deadline, it’s important to organize all necessary documents and file your taxes in advance, avoiding the chance of forgetting to include tax deductions that would have lowered your bill or increased your refund. Here are some surprising tax deductions you won’t want to overlook.
Health insurance premiums. Medical expenses can easily rack up, but the IRS is sympathetic to the cost of insurance premiums – in some cases. According to TurboTax, deductible medical expenses have to exceed 7.5 percent of your adjusted gross income to be claimed as an itemized deduction for 2017 and 2018. However, if you own a business and are responsible for your own health insurance coverage, there is a chance you’ll be able to deduct 100 percent of the premium cost.
Charitable gifts. While you most likely know that you can deduct donations of money given to charities – you probably didn’t know that out-of-pocket expenses for charitable work also qualify! For example, if you were to supply baked goods for a fundraiser, you could deduct the cost of goods and/or materials you provided. Here are some tips for making your charitable donation tax-deductible.
School-related purchases made by a teacher. It’s a common act for a teacher to purchase items needed for the classroom, out of their own pocket. And while it might seem that nobody appreciates that – the IRS certainly does. According to CNN Money, educators can deduct up to $250 for school materials, which gets subtracted from the teachers’ total income.
Job searching. The IRS allows taxpayers who are looking for a new job to deduct their job-hunting expenses on their federal income tax return. These expenses may include résumé costs, travel expenses, the cost of a placement agency, etc.
Unusual business expenses. Business owners should try to take advantage of every possible deduction, in order to minimize their tax liability. With that being said, if you have necessary expenses that are used to benefit your business, and you can justify the reasons for it, you can deduct if off your business income. Check out this list of 7 unusual business write-offs!