Private: Commonly Missed Tax Deductions

Private: Commonly Missed Tax Deductions

Filing your taxes can be a daunting task. We gathered tips to help you increase your deductions and your tax return. While some of these deductions may not apply to you this year, they are important to keep in mind when preparing for next year’s tax season.

Charitable Donations

As you may know, cash donations to charities are typically tax deductible, but have you ever donated clothes or furniture? If so, you are also eligible for a tax deduction for those non-cash items as well. You must obtain a receipt from the Salvation Army, Goodwill, or other donation center upon dropping off your donation. Read what the IRS has outlined about Charitable Contribution Deductions for complete details.

Points on Refinancing

Have you refinanced your house? Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan. For more details on what can be deducted, check out the IRS Home Mortgage Points section of their website. Have you been thinking about refinancing your home, but have not yet? Learn how the Mortgage Department at Mariner Finance can help you here!

Job Related Expenses

Were you successful in your job search this past year? Even if you weren’t, you could possibly have multiple tax deductions related to your job search. For example, if you used an agency, purchased new clothes for an interview, or mailed copies of your resume, you could qualify for tax deductions. In order to qualify, your expenses must surpass two percent of your adjusted gross income. Keep in mind the Job Search Expenses that can be Tax Deductible do not include people searching for a first time job, but instead those looking for another job in their field. No worries first timers! Did you move in 2016 for your first job? See if you qualify for the Moving Expenses deduction, and if so, fill out this form.

State Sales Tax

Back again for your 2016 tax return is the sales tax deduction. While this deduction does not always happen, due to Congresses rulings, this deduction is good for 2016. Itemizes must choose between deducting state income tax or states sales tax, but not both. This deduction is great for people who file in states that do not have an income tax and they can write-off sales tax instead. Use the Sales Tax Deduction Calculator to figure out your deduction.

Higher Education Expenses

Did you go back to school in 2016? Regardless of your age, you can possibly make this tax deductible. This deduction includes community college and college classes you may take during your retirement. To see if you meet the IRS criteria for the Lifetime Learning Credit, check out the details here. Did you just get out of school and are paying off your student loans? You could be eligible for the Student Loan Interest Deduction if you meet the requirements listed.

Energy-Efficient Home Improvements

Homeowners who install alternative energy equipment, such as solar water heaters, geothermal heat pumps, and wind turbines can take a credit of 30% of the total cost, with no cap through 2016. For more details and to see if you can make this deduction, check out the IRS qualifications in the Tax Credits Available for Certain Energy-Efficient Home Improvements.

You could be eligible for even more tax deductions this season. Are you in the military? Did you fly somewhere and pay a baggage fee?  Or did you pay for child care? These deductions and more are explained in Kiplinger’s article, The Most Overlooked Tax Deductions, to help get you the most money this tax return season. If you did your taxes and are still in need of extra funds, Mariner Finance can help. Apply online or visit your closest branch today!

The information provided in this article does not constitute financial advice and is provided for educational purposes only without any express or implied warranty of any kind. This article is not intended as legal, tax, investment, or any other advice, and Mariner Finance does not offer credit repair services. Consider talking with an appropriate qualified professional for specific advice.   

Blog posts are for informational purposes only.

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2022-11-24T10:39:42+00:00
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