Most people just want to get their taxes filed so they can get it done and over with. However, you never want to rush through your tax return or you could be giving away your hard-earned money. Today, we are discussing some tax deductions that you do not want to overlook to try to help you keep the maximum amount of your hard-earned money in your pocket.
Out of Pocket Charitable Deductions
Little donations add up. Make sure you keep your receipts each time you donate, so if you go over $250 in donations you can provide documented proof to the IRS. Additionally, if you volunteer for a charity and spent your money for them that is deductible too.
Student Loan Interest Paid by Parents
If you are a college student who cannot be claimed as a dependent by your parents, you can deduct the interest that they paid on your student loans. You can do this without messing them up because even though they are the ones who pay for your student loans, the IRS looks at it as though they gave the money directly to the child.
Job Hunting Costs
Most of the money that you spend searching for a new job can be deducted when tax time comes around. However, to be eligible for the deduction you have to make sure that you were searching for a position in the same line of work that you did previously.
Bottom Line
When tax season rolls around, slow down and take your time when filing your tax return to ensure that you do not overlook any tax credits.
Thanks for reading our Seattle CPA blog post! We update weekly!
If you’re looking for a CPA this upcoming tax season, call us at (425) 483-6600!