3 Things You Didn’t Know You Could Write Off on Your Taxes
Do you know that you can write off the amount of money you donate to non-profit organizations? For many, it may not seem right because after all, it was a donation. Deducting that amount on your taxes seems like you may be giving with one hand, and then taking it back with another. There is nothing wrong with writing off all of your charitable contributions. Asking for a receipt isn’t being cheap or greedy. It’s business.
Non-profit organizations are businesses too. Because their business is geared towards the betterment of their community qualifies them to file under the 401c3 status when filing taxes. This means that the money that these organizations earn is not operating to gain personal profit. This also means that any money these businesses receive need to be reported to the Internal Revenue Service (IRS). By you reporting the amount donated to the IRS is actually helping that organization confirm their own claim.
2. Sales Tax
Every time you spend money and the cashier asks you for a receipt, say yes! If you’re worried about the environment, then have them email or text it to you. As long as you have documentation of a receipt, then you are qualified to write off that sales tax. Imagine if you kept every receipt you spent in one year. Think of how much money in sales taxes you could write off on your annual taxes! Not many people do this because it’s a tedious process and not many taxpayers are disciplined enough to collect all of the receipts they’ve spent in a years time—and they’re not always patient enough to take the time to add up the sales tax from every single receipt.
Most taxpayers are just comfortable taking the standard deduction instead of itemizing a year’s work of sales tax. The choice is ultimately yours to make though. You could also collect your receipts and hire a professional to do the adding for you!
3. Student Loan Interest
Education is expensive. If you have the opportunity to legally write off anything on your student loans, by all means, do it! It’s not guaranteed that you’ll find a job that will make up for the amount of money you’ve paid in education, so take advantage of writing off your student loan interest and save as much as you can. Your educational institution is required to send you an annual form stating how much money was paid toward interest.
Other things you can write off is mortgage interest, dependents, work travel expenses as they pertain baggage fees, food, lodging, and transportation. Dependents are a well-known write off, but not everyone may know about being able to write off relatives who you might have under your direct care, or nieces, nephews, sisters, aunts, and uncles who you support more than half of their income. Adopted and foster children can also be written off as dependents as long as you have the legal documentation to support it.
Even the expense of your financial advisor can be written off!
Knowing that, why don’t you call Success Tax Relief for a free consultation? Learn about other ways you can save money on your tax filings.
Call us today at 877-958-6638 or contact us online!