Tax season seems to get a bad reputation, and everyone groans and complains about the dreaded April 15. But with the average refund last year being $3,036, it seems like more people should be rushing to get their taxes done. 75% of taxpayers get some sort of refund on their taxes. Filing taxes can sometimes be confusing, and we all want to get the the right credits and deductibles. Here are are seven credits and deductibles you should know about before filing your taxes.
1. Energy Efficient Credit for Home Owners. If you made an energy efficient change to your home, you could get up to a $1,500 credit.
2. College Credit. You can get a $2,500 credit for each year your student is in college (up to four years).
3. Tuition and Fees Credit. You can deduct up to $4,000 in college expenses.
4. Lifetime Learning Credit: Up to $2,000 credit for post-secondary degree programs.
5. Donated Items Tax Deductible: Make sure you are getting your receipts when you drop off items at Goodwill. Donated items can add up to pretty significant deductibles. So before having a yard sale this year, you may want to consider just donating your items and receiving fair market value deductions.
6. Job Searching Deductions: You can deduct the following items: resume preparation (typing and printing, postage, long-distance charges, advertising, and photographs if required); travel (airfare, mileage, some auto expenses); meals, and lodging (actual expenses only).
7. Work-Related Expenses: You can deduct the following work-related expenses: bonding, employer-required physical examinations, office supplies not provided by your employer, professional or trade association dues, research, lecture and writing expenses, safety clothes and equipment, union dues, personal tools and equipment, travel, meal and entertainment expenses (see Publication 463), computers and mobile phones (see Publication 946).
I am not a tax expert, and this post is meant for informational purposes only. Please consult a tax professional to get the most out of your credits and deductions this year.
What are some of the deductions and credits you take advantage of in order to lower your taxes?