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.