3 Different Deductions You Can Possibly Take On Your Taxes

Posted on: 13 April 2017

With tax season in full swing, many people are wondering what they can do to save money on taxes and get the most out of their hard-earned money. Seeing a professional tax preparer will be one of the best ways to ensure that you are getting the best deal possible and that you are taking advantage of different credits and deductions available to you. Here are some deductions that you might not know about.

1. Interest

If you have a home loan or student loans, you can deduct the interest that you paid that year on your taxes. In some cases, it will be a dollar-to-dollar deduction. This means that if you paid $5000 in interest that year, you will get a $5000 deduction on your taxes. This is the case for many federally backed student loans, and for some home loans. And if it is not a dollar-for-dollar deduction, it is still a good amount that will be taken off your taxes. For this reason, you should make sure you get all the proper documents from your mortgage lender and your student loan lender. It will help you to save money in the long run.

2. Home Office

Another thing that many people do not realize is that you can deduct things in your home office. If you work from home or have expenses associated with work that you are required to pay for, you can deduct those costs. For example, if you are required to buy your own computer for work, if you have to pay for a phone line, or if you buy materials such as paper, printers, and so forth, these can all be deducted from your taxes.

3. Relocation For Work

If you had to relocate for work, you might be able to get a deduction for it. Keep track of all of the money you spent in gas, hiring movers, packaging materials, rental trucks, and so forth. This amount can be taken off the overall amount that you owe in taxes.

If you moved simply for pleasure, or just moved across the town, you will probably not be able to deduct those costs. Instead, it needs to be a long relocation that you had to do for work.

By understanding these things and the possible deductions you can take, you can make sure that you are getting the most out of your taxes. To learn more about tax preparation services, check out websites like http://www.tri-check.biz.