Increase Your Tax Returns!
Many are aware of the numerous tax breaks that exist to maximize their tax returns. Unfortunately, because of changes regarding income, you may be ineligible for previously used deduction methods or they may not be as valuable to you. With two weeks left to file, we want to make sure you get the most out of your tax return with the following 8 money-saving deductions, courtesy of the Today Show.
1. Moving-expense deduction:
If you gained employment and had to move because of it, you may be eligible for a deductions IF you paid for the move out of pocket and IF the new job is at least 50 miles away from your old home.
2. Capital loss deduction:
If you have investments in the stock market and your capital losses were greater than your capital gains, you can claim a capital loss deduction up to a net loss for $3,000 which reduces your income dollar-for-dollar.
3. Medical, dental expense deductions:
Because of changes to the Affordable Care Act, guidelines for tax-deductible medical expenses have changed. Your non-reimbursed expenses must be greater than 10% of your adjusted gross income to qualify.
4. Health savings account:
If you have a high-deductible health care plan, you may be eligible to set up a health savings account in time to get a deduction dollar-for-dollar if you contribute up to $3,250 (Single) $6,450 (families) to the account.
5. SEP IRA:
Much like the previous, if you are a business owner or are self-employed, you may set up and SEP IRA and can contribute up to 25% of your income (20% self-employment) up to $51,000.
6. Home-office deduction:
If you’re self-employed, you can claim a deduction for a home office by deducting $5 for every square foot of used work space, up to 300 square feet for a maximum deduction of $1,500.
7. Health insurance premium deductions for self-employed:
Business owners and self-employed taxpayers may be able to deduct health insurance premiums, but only if they are not already covered by their employer’s or spouse’s plan.
8. Business-expense tax deductions:
If you’re self-employed, a contractor or sole proprietor, you may be able to deduct other expenses related to your work. The IRS requires eligible business expenses be “ordinary” (something common and acceptable in that particular business) as well as “necessary” (something appropriate and helpful to the business).
If you are interested to know if you qualify for any of these, or have any other questions relating to your tax returns, contact Pure Tax Resolution for assistance. We are available 24/7.