Getting All Your Tax Deductions- Every Little Bit Counts

by Samantha Bennet on 2013/03/12

getting all your tax deductions getting all your tax deductionsI wouldn’t say I look forward to tax season. Who really does? It can be a serious hassle any way you look at it.

What I do look forward to, however, is taking advantage of the various tax deductions that are available to me.

You don’t have to be an expert on tax codes to understand the myriad of different ways you can take advantage of your day to day life when it comes to your income taxes.

People are often surprised at how much I’ve gotten back in the past. I’m never surprised. That’s because I know how to get the most out of my tax deductions.

It doesn’t require any great assortment of tricks. It certainly doesn’t demand you do anything illegal. All you have to do is take a look around your life, and find the legitimate deductions you can make for a greater return on your taxes. It’s a lot easier than you might think.

Finding Those Great Tax Deductions

I’m not going to give you every single tax deduction that may or may not work for you. That’s not really going to do you any good in the long run.

What I am going to do is give you a short list of tax deductions that have worked for me over the years. Consider all of them as they relate to your own life. They may work for you. The only thing you stand to lose if they don’t is a little bit of your time. And that’s not a bad gamble, if you do indeed stand to get an even bigger return.

Try some of these potential deductions on for size:

-Charitable noncash donations:

Dropping off some clothes and other items at your local Goodwill? Get a receipt. It’s tax deductable. This can be particularly significant for those who are in the habit of donating frequently. I personally make two or three big trips a year.

-Health insurance premiums:

Remember that any health insurance premiums you’re currently paying are potentially deductable. I’m paying long-term-care premiums myself, and this has proven to be a great deduction.

-Education:

Are you a qualified educator? If you are, you may be able to claim an above-the-line deduction of 200 dollars for material purchased over the course of the year.

-Energy savings home improvement credit:

Completed any home improvement jobs of the course of the year? Were they designed to save on energy use and costs? You can score a neat little credit for that.

-Investment and tax expenses:

Don’t be one of those people who forget that tax planning and investment expenses, if the total exceeds 2%. I certainly don’t forget.

-A Dollar Here, A Dollar There:

Getting the kind of tax returns you deserve doesn’t mean you have to be dishonest. All it means is that you have to keep an eye out for the things you have and do in your daily life.

I’ve given you five possibilities. What are some potential deductions from your own life?

Next read-The National Debt and How It Has Affected Individual Finances

Courtesy of CreditCardShoppe.com

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