7 Commonly Missed Tax Deductions That Can Save You Money

7 Commonly Missed Tax Deductions That Can Save You Money

Is the IRS on your gift list? You might not think so, but if you don’t take all the tax deductions that you’re entitled to, then you’re just giving your money away. There are many tax deductions and credits that are not well known.   How much money are you giving to the IRS that could be happily filling your wallet instead?  Consider these commonly missed tax deductions:  Non-cash donations to charities. We all know to deduct the checks we write to our favorite charity, but most of us forget to deduct other things. Items like automobiles clothing, food, furniture, and more are all deductible.  You’ll need to show receipts if you get audited, so be sure to collect your receipts.  Mortgage refinancing points. If you’ve refinanced your mortgage, you can deduct those points. In many cases, they have to be deducted over the life of the mortgage. So if the mortgage is for 15 years, you can deduct 1/15 per year. It’s not much each year, but it adds up.  Medical insurance premiums. If you spent more than 7.5% of your income on medical expenses, you can likely deduct the cost of your medical insurance premiums.   If you’re self-employed, you can deduct 100% of your medical insurance premiums without meeting the 7.5% requirement.  Energy savings home improvement. You can get a 30% credit for any energy saving improvements you make to your home. This is a credit, not a dedication. So you not only get to take 30% of the cost of the improvements directly off your tax bill, but you also get to save money on your utilities....
Taxes and Your Inheritance

Taxes and Your Inheritance

As if taxes and death weren’t bad enough, the government has managed to combine the two into a single, miserable experience. In many cases, you don’t have just a single tax pay. There can be multiple taxes due at various points in the inheritance...
Give Yourself a Tax Break by Harvesting Your Losses

Give Yourself a Tax Break by Harvesting Your Losses

The end of the year is nearing. You might be able to take your poor stock picks and recover some of your money by realizing a few tax breaks. Harvesting your losses on your income taxes is an effective way to put more money in your pocket come April. Few investors understand just how powerful it can...
Should You File Your Taxes Early?

Should You File Your Taxes Early?

Do you rush to file your tax returns as soon as possible? If you can get all your documentation, this might even be as soon as January. But is filing early a good idea? Like many things in life, the answer is, “It...
Tax Advantages for the Self Employed

Tax Advantages for the Self Employed

There are some great advantages to being self-employed. Being self-employed allows for plenty of opportunities to minimize your taxable income by turning expenses you would have even if you weren’t self-employed into tax-deductible business...
Leaving Your 401(k) to Charity

Leaving Your 401(k) to Charity

Many of us wish to leave the majority of our assets to our loved ones, but we also want to offer some to charitable organizations. This is where some smart tax planning can really pay off.   One of the most important parts of setting up your 401(k) is naming a beneficiary. This ensures that your 401(k) can pass to someone without going through...
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