As a tax payer you must be on your toes and know what tax deductions apply. Here are 10 that could help you save on tax:
1. If you ever used a credit card to give funds to charity you can claim the donation as a tax deduction. Just keep the statement and receipt used by the charity. Often even clothes and furniture that you donate can be eligible for a donation if you have a receipt.
2. When refinancing your home the new and old points are eligible for tax deduction. You just need to figure out how much and when it is accountable.
3. Health insurance premiums are deductible if your medical expenses exceed the 7.5% of your adjusted gross income or AGI. And in case you are self employed then you can claim the whole amount.
4. In case you are an educator you can claim tax deduction of USD 250 on materials like computer equipment and books.
5. If your adjusted gross income is less than USD 65000 or USD 130000 on a joint return you can claim as deduction almost USD 4000 spent on high education. In case you are eligible for the Hope or Lifetime Learning Credit then the tax deduction can be USD1500 or USD 2000 per return. Always use what gains you the greatest benefit.
6. You may be surprised to know that if you use eco-friendly fuel in your car you can claim a deduction or tax credit. Or if you have a hybrid car then you most certainly qualify.
7. Tax deductions applicable on expenses like investments, loan consolidation using equity, fees paid to compute taxes and fill returns. Known which expenses are eligible and be sure to stake your claim.
8. In case you have been affected by storms, hurricanes or earthquakes, you may be eligible for special deductions declared by the government. In fact in recent times even those who helped during a disaster were given tax waivers.
9. Tax deductible on retirement funds. This is to encourage people to save for retirement years.
10. Tax waivers on fees paid as membership to professional organizations and institutions. Most people forget to avail the tax deduction on membership fees paid.
Barry Allen is a freelance writer for Online Tax Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax, services tax,income tax, property tax and many more.