If you are looking to get a great tax refund then you need to make sure that you take advantage of every last deduction that you are able to claim. Tax deductions are essential to reducing your taxable income and putting you in a position to get a tax refund. The unfortunate thing is that there are thousands of taxpayers that are not taking full advantage of the deductions that are available to them. Here are several great tax deductions that you may want to take advantage of when you are filling out your taxes.
If the medical expenses that you pay during the course of one year total 7.5% of your adjusted gross income then you will be able to deduct the expenses from your taxable income. That percentage might seem a little hard to meet however if you are planning to have any expensive medical treatments that may only be partially covered or not covered at all by your health insurance it would not be difficult at all to reach that total.
The internal Revenue Service will allow taxpayers to deduct the total amount of state sales tax that they paid the previous year or the total cost of their state income taxes. If you happen to live in a state that does not have state income taxes then you need to deduct the total amount of sales tax that you have paid on your taxes.
If you or your spouse or any of your dependants are going to college you can deduct up to $4,000 in college tuition. This can be particularly beneficial to families that may have had too high an income to qualify for other tax credits.
People always seem to remember that they need to deduct large charitable contributions but rarely think that it is worth claiming smaller contributions. Well you should think again as little charitable contributions can end up adding up. For instance if you are volunteering to prepare items for a church bake sale you can deduct the costs of all of the items used to prepare the treats.
Taxpayers are able to deduct the costs that you have incurred by having their taxes done by a professional or by using tax preparation software. The thing that you need to remember is that you need to claim these monetary costs in the year that you paid for them. So if you purchased tax preparation software in 2006 then you would need to claim them on your 2007 tax returns.
So remember these tax deductions the next time you are getting ready to have your taxes prepared and if you are able to claim them you could be looking at a very nice refund.
Leave a comment