What Deductions Can You Make This Year?

No one ever truly enjoys paying their taxes, but the one thing worse than having to shell out your hard earned cash to Uncle Sam is discovering you paid more than you had to in the first place! Oftentimes, taxpayers will end up writing a bigger check because they overlooked a possible tax deduction. Sure, everyone knows about the big ones, like getting married, but there is a large list of other common expenses that could decrease your balance when claimed.

See if you can reduce your taxes by claiming any of these common, but often forgotten deductions:

  • Tax preparation fees: Having your taxes prepared by a professional tax service in Des Moines, IA could save you more money in the long run. The cost of the preparation and any convenience fees can be deducted from your amount due or help you earn a bigger deduction. It will only count if the fee is paid this year, so you can only deduct those incurred in 2018 for your 2017 tax return. Remember, too, that this can’t be used for online tax preparation software, but can be applied for any paid in-person services.
  • Teaching expenses: Teachers often find themselves paying for classroom expenses out of pocket. But you can recoup some of those costs by deducting up to $250 worth of expenses on your 1040 form if you are an eligible educator working in a K-12 school.
  • Donations: Being charitable can pay off. Most people know that you can deduct money or items donated to a nonprofit or charity, but other expenses can also be claimed. Out-of-pocket expenses involved with any volunteer work are also deductible. The cost of driving to and from a volunteer event or supplies purchased for a blood drive you are organizing can be deducted. It is recommended you save any receipts so you are prepared in the event of an audit.
  • Continuing education: Education doesn’t have to stop just because you graduated from college. Taking an adult education class, such as sign language or knitting, could qualify you for an additional deduction under the Lifetime Learning Credit. Any expenses associated with the class can be claimed for this tax credit. Going back to finish an undergraduate degree can qualify you for the American Opportunity credit. Students can deduct up to $2,500 in undergraduate expenses. Consult a professional tax service in Des Moines, IA for the specifics on this one.
  • Sales tax: Did you know you can deduct the state income tax off of your federal income tax? This can be a huge help on major purchases, such as a new car or a wedding ring. Remember to hang on to the receipts of any paperwork, as the IRS will require you to itemize the purchases in order to claim the deduction.

There are countless ways to use deductions to help you save money on your taxes with the help of a tax service in Des Moines, IA. Stop by Accounting & Tax Professionals, PLC today to learn more!

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