Tax Deduction You May Not Know About

While a lot of things are taxed in this world, there are also many things that count as tax deductions. And, obviously, you want to take advantage of as many things in this second category as possible. That’s why you should educate yourself on even the most obscure or lesser-known deductions. If you do, then you’re a lot less likely to miss out on savings!

Sales Tax

Almost everyone pays sales tax, but not everyone knows that you can deduct the sales tax you pay from your federal income tax.

To do this, you’ll need to itemize your deductions.   

However, keep in mind that deducting sales tax only works well in certain situations, so only take advantage of this option if it’s going to benefit you more than other choices, such as taking the standard deduction.

Teacher Supplies

If you teach anything from kindergarten to twelfth grade, chances are that you often dip into your own pocket to buy classroom supplies. Luckily for you, you can deduct up to $250 for classroom-related expenses.

Childcare Fees while Volunteering

If you’re trying to do your part by volunteering but it requires you to hire a babysitter, guess what? You can deduct those child care costs from your taxes as a charitable contribution. This only counts for childcare when you’re actually volunteering though, so you can’t have a date night and deduct the costs.

Social Security for the Self-Employed

If you’re self-employed, you’ll need to pay 15.3% of your income into Social Security and Medicare. However, you can at least deduct the employer portion from your taxes, which saves you a little bit. And, really, every little bit counts when you’re saving money!

Believe it or not, these are just a few of many possible deductions. Be sure to do your research and make the most of every single deduction you’re eligible for. These deductions can really add up come tax time.