As tax season approaches, it’s very important to make sure you are not overlooking important information while you file your taxes.
The JMN team has gathered some of these commonly forgotten tax credits and breaks that can help you down the stretch.
Tax Deductions
TEACHERS
If you’re a teacher, make sure to keep all of those receipts! You can deduct $250 worth of any unreimbursed expenses for materials purchased for your classroom.
HOME OFFICE
Do you work from home? Well if so, you may be able to save a little cash when doing your taxes. You may qualify for a deduction if you use your home as a primary place for meetings or producing work.
The IRS says that the part of your home used for business purposes must be only used for business and not personal.
TRANSPORTATION
Most people have to commute to work, that could also save you some cash.
If you use your car for business (and personal) purposes, you can deduct the cost of it for business use. Take the time to calculate the mileage rate or actual expense.
SALES TAX
You can deduct state and local general sales tax in most cases, according to the IRS.
MEDICAL EXPENSES
If you paid out of pocket for medical or dental expenses, you can deduct those expenses if the total amount exceeds 7.5% of your AGI (adjusted gross income), according to the IRS.
CHARITY DONATIONS
Did you donated any money to a non-profit, religious organization, government, hospital or a number of other qualifying organizations? Much of that is deductible as a charitable contribution.
Tax Credits
CHILD TAX CREDIT
The federal government has launched a website to help determine if you are eligible for a child tax credit. Visit https://www.childtaxcredit.gov/ to see if you qualify.
ADOPTION
Did you adopt a child this year? Certain expenses related to the adoption process may give you a tax break.
If you spent money on adoption fees, court costs and attorney fees, along with much more, you may be eligible for a tax credit. Visit https://www.irs.gov/taxtopics/tc607 for more information.
HOME IMPROVEMENT (ENERGY)
Were you energy efficient in 2021? If so, you may not spend as much money when filing taxes. Small wind energy, solar electric and water heating, along with other energy saving hacks, may qualify you for a tax break.