The tax code is a complicated formula and changes each year. That’s why accountants have job security. Here’s a few tax breaks many Americans do not take advantage that should.
Charitable contributions. Even if it means baking cookies for the fund raiser or running errands. You can write those off. Write the amount of the ingredients you bought and car mileage can be written off at 14¢ per mile.
You can write off moving expenses for that first job as long as you moved further than 50 miles. You can’t write off the costs of finding that job just the moving expenses. Those write offs can be for 23¢ per mile.
If you’re paying for child care, make sure to claim your child care tax credit. And a tax credit is better than a deduction as it matches the reduction dollar to dollar.
How about the Earned Income Tax Credit? IRS claims 25% of Americans do not take advantage of this credit. It is designed to help lower income families supplement their wages. You have to file a return and can be complicated. To find out if and how much you qualify for, go to the IRS website and follow their questions to see.
There are many areas to get deductions and credit. The above are the most pertinent to the working person. Go to the IRS website to fully delve into the best way to file and the amount you have to pay or are owed.
Just another Shop RTO personal finance tip.