Money Talks News: Tax Hacks 2014: Commonly Overlooked Deductions
Wed, 26 Feb 2014 13:28:14 GMT —
Finding income tax deductions is really kind of like looking for buried treasure.
That's because tax deductions are valuable and they're often buried.
Deductions are cool because they reduce the amount of income you're taxed on and that lowers your tax bill, which is why they're worth digging for.
Here are a few that are commonly missed.Number one? Charity. You know you can deduct your contributions. But if you volunteer, you can also deduct 14 cents a mile for transportation to and from, and the cost of supplies you use in that charitable work.
Number 2: State Sales Taxes. Since you have to choose between deducting state sales taxes or state income taxes, this one's best for those without that state income tax.
Then there's the Dependent Care Credit. Most parents are familiar with it, but many might not know it might also apply to some summer day-camp costs and adult dependent care. Restrictions apply, but it's worth checking out.
You probably also know that contributing to a retirement plan can also get you a tax deduction. What you may not know, though, is if you're low to moderate income, it might even get you a credit. What you want to look up is the Retirement Savings Contribution Credit.
Next: Job search. If you're looking for a job in your present occupation, you can deduct all kinds of stuff, from resume preparation to employment agency fees.
Bottom line: Every dollar of deductions that you unearth can save you up to 30 cents on your taxes.
That's why they're worth digging up. What you need now is more information on where to find deductions, and they're waiting for you right here at moneytalksnews.com.
Just do a search for "Tax Hacks 2014." For Money Talks News, I'm Stacy Johnson.