So many people across the United States overpay on their taxes and do not even realize it. This is because most people simply do not take the time to investigate all of the options available to them in terms of tax write-offs.
One study in 2015 indicated that people who itemized their taxes claimed a total of $1.2 trillion in tax deductions, compared to just $747 billion by people who claimed the standard deduction. What’s more telling: more people claimed the standard deduction than itemizing!
By seeking tax assistance in Des Moines, IA, you can save yourself a lot of money by taking advantage of some of these tax write-offs that many people otherwise forget:
- Charitable contributions: Any contributions you make to charitable organizations can be deducted from your taxes. Most people remember big gifts or reoccurring donations, but many people do not realize that even the small donations add up to big savings. Buying items for a school fundraiser, purchasing items for a church benefit event and portions of gas used to drive back and forth to charitable events are all items that can be included in your deductions. Remember to be thorough when calculating your charitable contributions!
- Moving expenses: Specifically, moving expenses to get your first job. Any expenses incurred while moving to get your first job are deductible, including gas prices for a move of more than 50 miles, getting yourself household goods, paying movers and more.
- Mortgage points: Most people know that when you buy a house, the mortgage points you earn can be immediately deducted. However, many people do not realize that when you refinance a mortgage loan, you are able to deduct the points once again over the course of the loan’s life. So for a 30-year loan, you’d be able to deduct 1/30th of the points each year. This might not come out to a whole lot of money, but again, it’s all about making the little things add up.
- Student loan interest paid off by parents: This is a relatively recent change to the previous rules regarding student loan interest. Now, even if your parents paid back a student loan, you can still get the tax break! This is because the IRS essentially treats it as a gift from the parents to the child, who then paid the debt. This deduction only works if you are not still claimed as a dependent. You are allowed to deduct up to $2,500 of student loan interest paid by your parents.
- Taxes paid last year: If you still owed taxes when you filed your previous year’s tax return, you can include that amount as a deduction on this year’s return. Note: this only works for state taxes.
Don’t pay more in taxes than you have to! There are likely a number of ways you can spare yourself some cash in the next tax season. To get these benefits for yourself, seek tax assistance in Des Moines, IA from Accounting & Tax Professionals, PLC.