Tax season is soon upon us. Does this give you any anxiety? I have always paid my taxes and very liberally combed through records and receipts (Type A right here). I still feel like I am always missing something despite TurboTax telling me that I have every possible box checked… guaranteed!
Chances are if you are reading this post you might feel a bit like me and be checking to see if you missed any odds or ends when filing your taxes. Or you are just a total money nerd trying to get the most from your pennies. Either way, we will get along perfectly.
It is easy to forget about certain tax deductions. The year is packed and trying to remember how many times I went to Goodwill typically has me skipping that section of the deductions. But don’t, because we all know you dropped off at least three bags in the spring.
As I looked over this past year I found a few deductions I had forgotten about:
1. HSA Accounts
These are tax exempt accounts. You can deduct the contributions you or someone other than your employer made to the account.
Any tuition can be a write off, just be sure to input the Schedule A 1040 from the institution. In addition to this any form of education received for business or you profession can be a write off.
3. Teacher Write Off
Teachers are able to write off $250 for purchases of classroom supplies and materials.
4. Student Loan Interest Deduction
If the modified adjusted gross income is less than $80,000 ($160,000 if filing a joint return), there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments.
5. Home Renovation
These are not deductible if you put in a new kitchen sink. However if you made any renovations for medical reasons like installing a ramp or even a shower head for medical needs.
6. Jury Duty Pay
If you gave your jury duty pay to your employer because you were still collecting your salary you can deduct jury pay from your taxable income.
7. Charitable Contributions
Donations to charity can lower your overall taxable income. You must donate cash, property or have written record of physical items donated. You must also donate to a qualified tax exempt organization.
While most babysitting is not deductible, if you pay your babysitter while you are working at a charitable organization this is deductible.
None of these includ the many tax deductions available to you as someone who is self-employed. To look more into preparing for tax season as a Freelancer check out this article I wrote for Smart Money Mamas.
What are some tax write offs you never want to forget about?
Thanks for this list, I am always thinking of creative ways to save a bit and there were definitely a few there that I wasn’t thinking of. Per your Home Renovation one, I finished my basement a little while back and added heavy insulation. I almost missed that there are some energystar credits for things like better insulation, doors, and windows that have a better energy efficiency rating. Its around 10% but that can be real cash if you did some substantial remodeling or rehab.
Nice! Thank you for sharing that tip. We had not thought of that.