4 Obscure IRS Tax Deductions You Need to Know About for Next Tax Season
Many taxpayers might be aware that they can deduct their charitable contributions, but many of them don’t actually take advantage of it fearing that somehow by claiming it on their taxes, they’re really not being very charitable—that they’re cheating somehow.
You have to get that sort of thinking out of your head!
Non-profit organizations have to account for their income. It’s required by law that these organizations provide all of their donors with a receipt of the amount that they gave. So reporting that receipt to the Internal Revenue Service (IRS) actually helps them out confirming that they legally earned their money. If the IRS feels that any non-profit organization is mishandling their donations, they’ll most likely undergo an audit.
So don’t feel bad about reporting to the IRS what you give to charities. You’re helping them out as well as yourself.
- Student Loan Interest
Many times while you’re still in college even, you may get a statement that shows how much interest is accumulating on your student loan. Although you’re not obligated to pay your student loans back until after you graduate, you have the option to start paying your interest while you’re still in school. Of course, this all is contingent on what kind of loan you have too.
Now, after you graduate and you have to start paying back your loans, you can deduct the actual amount of tuition you paid for that tax year. Many colleges and universities are obligated to issue a 1098-T Form that states exactly how much tuition you paid that year. This form can make a significant impact on your taxes and make all the difference in whether you’ll owe or pay the IRS.
Unfortunately, educational institutions usually take awhile to issue these forms and truthfully, it’s not uncommon to get them after the 31st of January. So, be patient and if you have to. Contact your college to follow up. What you absolutely do not want to happen is receive your 1098-T Form after you’ve submitted your tax filing to the IRS.
- Jury Duty Income
Jury Duty. Who knew?
There are some taxpayers who receive wages from their employer if they’re on jury duty. If you’re receiving jury duty pay from your employer even though you’re not actually working, you’ll be obligated to turn that money over to your employer and report it on your taxes as an adjustment income.
- Baggage Fees
This is great news for small businesses.
If you’re traveling, expenses like coffee, lunch, airport parking—all that is written off as it’s considered a business expense. However, did you know that you can also write off your baggage handling fees as well?
So the next time you’re traveling and you wince at the cost of baggage fees, rest easy knowing that those over-priced fees is just another number to add to your deductions.
So Much More to Learn!
Success Tax Relief can help you get a bonus depreciation and also a Social Security Tax credit if you’re a small business owner. If you’re just starting out in the world don’t worry, we’ve got something for you too. Just be sure to keep track of all of your job-hunting expenses. If you land a job that causes you to move, if your employer doesn’t cover it, then make sure you keep track of those expenses too because we can use all of that information to help your next tax season look better than ever.
Schedule a free consultation with Success Tax Relief today. We have an open door policy where we’re always available 24/7. Our number is 877-825-1179. You can also email us or use our online form to ask a quick question.