Holiday Tax Deductions That You Didn’t Know About!
With the holiday season approaching, the cash flow from your bank account is expected to increase. The trends and data of prior years pretty much confirm this. Whether you plan to cut back on holiday expenses or go all out, now is the time to be conscious of how much you’re spending and what you’re spending it on, because there is a possibility that you can write those expenses off on your taxes.
The professional team at Success Tax Relief has provided a list of deductions that our clients have benefited from money spent during the tax season. Here is the list:
- Donations – A few of our clients may have a general idea that they can write off charitable contributions, but even fewer are aware of what exactly constitutes as that.
- Cash Donations – This is pretty much self-explanatory. As the old saying goes, “Cash is king”. However much money you’ve donated to non-profit organizations is the same amount that you’ll be able to write off as a deduction.
- Non-Cash – Non-cash items refer to items that you’ve given away or donated to a non-profit organization. Things like gently-used clothes, furniture, or even a car can all be appraised at a certain amount taking its current condition into consideration. It is recommended that when appraising your donated item(s), be as honest as possible. Over-appraising donated goods might send a red flag to the Internal Revenue Service causing them to send you an audit letter.
- Time – Yes, you can deduct the amount of time you spend toward getting to and from the place you have chosen to volunteer. The cost of gas, tolls, parking, mileage, and/or public transportation can all be deducted from your tax expenses.
- Standard Deduction – All United States taxpayers are allotted to a standard tax deduction. Much like the tax bracket, the standard amount is based on your annual income and whether you are filing as an individual, head of household married filing jointly, or married filing separately. The standard deduction also takes your trusts and estates into account.
- Medical and Dental Expense – If you have a year where you are pouring out a considerable amount of money on medical and dental expenses that are non-cosmetic related, then there is a possibility that it may exceed the standard deducted amount allotted to you. In such a case like this, it’s recommended to take full advantage of this and fill out an itemized deduction form also referred to as Schedule A. The more your deductions are, the less your taxable income will be. As a result, you might be reduced to a lower tax bracket.
There’s Much More Money to Save!
Other holiday tax deductions you might find yourself spending money on are baby-sitting fees to attend those festive parties. There’s also the end-of-the-year sales for cars, so you can expense your car registration. Home renovations, and certain legal expenses may also apply. Schedule a free consultation with Success Tax Relief to get more details on the type of holiday deductions you can take advantage of today. You can also ask any questions you may have on our online contact form.