Hidden Credits and Deductions You Should be Aware Of
The tax deadline is quickly approaching. Not only do you need to get all of your tax documents together for a simple and seamless filing experience, but you should also take a look at the tax deductions list to see what you may qualify for. Common deductions like your home mortgage interest are well-known. However, there are other hidden credits and deductions to maximize your refund that you may not know about. Here are some you may qualify for and need to be aware of when preparing your taxes.
Major Life Changes
Having a child is a big event and qualifies you for some tax relief via credits and deductions. So does getting married. But did you know, if you got married at a church or a specific historical venue, any money you paid to the actual venue could qualify as a charitable donation? This charitable donation can be put on your tax return to boost your refund significantly, depending on how much you paid for the venue.
A lot of medical expenses are found on the tax deductions list, but too many people overlook some of them. If you have a medical condition or disease diagnosed by a doctor, then you may be able to deduct some of your travel expenses to and from a medical facility. This includes your mileage, toll bills and parking fees. You can also get some tax relief by deducting certain medical aids like hearing aids, crutches, orthopedic shoes, canes, contact lenses and eyeglasses.
If a doctor diagnoses you with a specific mental or physical illness or condition and prescribes you to take classes or workout sessions, the fees paid may be deductible. This would include anything from gym membership fees to weight-loss programs and any other program directly related to your condition. It’s important to note that your doctor must prescribe these memberships or programs for them to qualify, so be sure to get written directions from them as proof.
Job-Related Moving Expenses
Moving to a new location for a job can be costly, but necessary in many situations. The good news is if you moved at least 50 miles away primarily for job purposes, then the moving expenses can be considered tax-deductible. The only catch is you have to be employed at the new job for 39 weeks or more. Your tax professional can help you ensure the qualifications are met since every situation is unique.
Rocket Tax is here to help taxpayers make filing their taxes a simple process. We keep up with all of the latest tax laws so our clients don’t have to. All we need to know from you is what happened in your life for the tax year we are helping you prepare, and we will identify every possible tax deduction and credit you qualify for. Get a head start by looking at the tax deductions list on the IRS website, then gather your documents in preparation for filing. We are also available by appointment if needed, so contact us at any time to schedule yours today.