We’re all looking to get back as much money as possible on our taxes. For many of us, it’s like a mini-lottery to anticipate each spring. But are you maximizing your return? Of course, if you have questions, you should always consult a tax professional. But you might be entitled to write-offs. Just remember that depending on your income, you might only be able to write off a portion of these items below. And your particular financial situation might enable you to qualify for many more than I mention here.
Here are a few things you should consider when filing your taxes.
1. Supplies and Mileage
Is there anything you bought for work, like uniforms or supplies? Did you drive a lot of miles for work, or spend money on tolls? Did you pay for licensing fees for your occupation? If so, you might be able to write off all or a portion of those costs.
2. Education
You can write off a portion of your student loan interest or the costs of taking continuing education courses.
3. Real Estate
You can write off your mortgage interest and real estate taxes. Also, ask your accountant about your state income tax or sales tax write-off opportunities.
Some portion of energy-saving home improvements is also tax deductible.
4. Charitable Giving
If you give to your church and other non-profit organizations throughout the year, make sure that you keep records of it. Those dollars can be written off.
And it doesn’t always have to be money you’re giving away. Did you donate a car, furniture, clothes, or toys last year? If you have a receipt to show it and can assign it an estimated dollar value, you might be able to claim it on your taxes.
5. Job Search
You can deduct some job hunting expenses in certain cases.
6. Job-Related Moving Expenses
You can also deduct some moving expenses for your first job if you meet certain criteria.
Do you want to get more money in your paycheck every two weeks to use right now, or would you rather have less money in your paycheck and a larger tax return? It’s a fundamental question of when do want your money and what do you want to do with it? If you like getting a large chunk of money as a form of forced savings, then you probably will want to have more money deducted from your pay. If you need the money now, pay less in taxes each pay period and expect a smaller tax return.