With the economy facing a lot of challenges now, we feel the need to save even a single cent if we can. As we file our tax, we wish that we could save more in any way, fortunately, there are 10 simple tax deductions many don’t know.
Two Jobs, Less Cost
To provide enough for the family, it is now common to have two jobs a day. After a day’s job, some rush to their part time jobs. While all really have to pay for their transportation for the day’s work, those who have a part time job could deduct part of the cost of the transportation they pay going to their second job.
Moving is a Breeze
It is not new for us to find a greener pasture, if you are fortunate, you can land a better job yet you might have to move to another state. If you are going to move at least 50 miles away, you can deduct some costs of moving, including the transportation, storage, insurance and lodging due to the moving out.
Parents at Work
It is hard to be a working parent, as they have to save as much as they can to make ends meet. Fortunately, they can deduct some partial costs of what they pay the babysitter, day care, preschool or nursery school. While this is good news, there are some considerations with regards to the child’s age and credit percentage.
Planning is Saving
It is troublesome to have a well planned investment expenses and itemized tax reduction, however, it pays the price. If the itemized costs exceed the 2% of the gross income, you can have it deducted from your tax. Investment expenses can include your phone bill for calling your broker and your month subscription to a financial magazine.
Being an educator is rewarding, however there are times that an educator has to shed off his or her own cash to buy for the classroom’s needs. This cost is considered as an above-the-line deduction and can be used by an instructor, teacher, teacher aide and a school head. With this deduction, there is no itemization required.
Health is wealth, and many accepts the fact the health insurance is something we should not ignore. Those you have a medical insurance above the gross income of 10% can file for a deduction.
Refinancing a mortgage is a step going back to a better financed life as it could be hitting two birds with one stone. You can refinance your mortgage and earn points at the same time. Use the loan points for your deduction.
It is hard to lose your home due to a typhoon or an earthquake, rebuild your home with the help of a federal aid and then deduct some of the other uninsured rebuilding cost from your tax.
If you are a self-employed who loves to have your home as your office, you get to enjoy more unforeseen advantage. Deduct some of the cost of your utility and house rent, as well as your monthly magazine subscription that ties in with your career field.
A Helping Hand
As it is known that donated monetary help to charity is non taxable, services to charity can also be deducted. If you had to drive for a fundraising or charitable event, note your mileage as you can deduct some cost of it.