This is a question I'm sure we have all asked at one point or another. As a matter of fact I used to ask that same question every stink’ in time tax season came around. But you know what? I've finally answered it. So, without further a due a give you, tax deductions for the money saver!
What Can I Deduct?
Business Expenses - If you're a small business owner, self-employed, or even a private contractor, these deductions can be super powerful.
1. The first thing you need to do is deduct your transportation costs. Let's use an example to explain this. Let's say that I'm a cable repairman and on average I drive at least 50 miles a day. Well, guess what? You get to deduct your gasoline expenses as a tax deduction. And not only that, but you can also deduct the expenses incurred for your vehicle's maintenance.
2. Another powerful tax deduction is that of deducting your office supplies and equipment. This includes pencils, pens, paper, log books, filing cabinets, computers, printers, ink, and yes even tools. So, if you're a “cable repairman" that means things like wire stripers, electrical type, signal meters, screwdrivers, etc.
Home Owners - These deductions can offer major relief for most Americans.
1. I know this is going to seem like an obvious tax deduction, but you'd be surprised to know that some people forget to take advantage of it. And that is to deduct the interest on your home mortgage.
2. Here's one that's unique. You can receive a tax deduction for improvements that are made to your home. Things like adding vinyl siding, certain landscape improvements, or even security systems. But remember, these improvements have to add value to your home.
College Students - These will make you really happy.
1. This tax deduction called the “Life Learning Tax Credit, " is available to all students who are taking at least one class from an accredited school. Students who qualify can receive credit for 20% of the first $10,000 they spend on educational expenses. The maximum amount one can receive is $2,000.
NOTE: Eligibility requires that single filers must have an adjusted gross income of less than $52,000 and joint filers must make less than $105,000.
2. In most states students can receive tax deductions for their semester and/or yearly tuition. So, if you love to learn this can be a very helpful deduction.
I hope you've learned something new and helpful from reading this article. And now it's time to ACT! Remember, applied knowledge is power and you can use it to save money.
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