Most consumers want to pay fewer taxes to the federal government. Capitalizing on tax deductions is one way to do this. Ironically, the IRS claims a large percentage of Americans pay thousands of dollars more in taxes than they need to.
Here are a few tips every American should know.
Breaks For The Self-Employed
This information is important whether or not one uses tax preparation services in Marietta GA. Indeed, it is also best to be able to check the preparer’s work. For instance, mileage is deductible if a personal car is used for business purposes. Further, a tax break is available for those with home offices.
The deduction is taken by calculating the office’s share of the home’s total expenses. For example, an office that occupies ten percent of the home needs to pay ten percent of expenses. The expenses should include things like utilities, the mortgage, and insurance.
Deductions For the Money-Wise
Individuals with investments are entitled to a tax break for losses. The losses suffered must be more than the money earned. Additionally, anyone who loses over $3000 can spread the deduction over three years.
Unexpected Medical Bills Are A Reality
Medical bills can cost a small fortune. Fortunately, the IRS allows taxpayers to write off some of these costs. Experts say medical costs must be greater than ten percent of one’s adjusted gross income. The percent changes to 7.5 for seniors over 65.
A Tax Break For Helping Others
Thousands of Americans take advantage of deductions for charitable giving. That is why a taxpayer has to maintain records of these gifts. Deductions are given for gifts to charities, schools, and churches. It is important to keep a copy of the receipt for all donations.
Owning a home is a major expense and owners should take advantage of several deductions. Indeed, mortgage interest deductions can save thousands on a tax bill. Homeowners may also deduct property taxes, mortgage points, and premiums for private mortgage insurance.
There are many other deductions available for those with savings vehicles like 401ks.
