Everyone is looking for ways to save a quick buck here and there. We shop sales, avoid monetary temptations and even go to extremes when it comes to coupon clipping. But did you know that each time you file your taxes, you could be overlooking precious savings opportunities?
There are a surprising number of things you can write off on your taxes that you may have completely missed this past year. It’s estimated that about $1 trillion in deductions were itemized in 2016. Did you get all of yours? Let’s break down some of the most overlooked ways to save money each year on your taxes, and why it pays to invest in tax services in Jamestown, ND to make sure you get them all:
- Charitable contributions: This is one of the most claimed deductions each year, but still overlooked by a majority of Americans. Did you drop off clothing at Goodwill? Donate a few bucks to the Salvation Army? Round up for charity through your favorite online retailer? These can be totaled and claimed as a deduction! It adds up throughout the year, too. You can even write off out-of-pocket costs, like the money you spent to make cookies for a school bake sale.
- Moving expenses for work: Got a great job in a new city, but work didn’t pay you to relocate? No problem—Uncle Sam will! If you move more than 50 miles to take a job, you can take back up to 23 cents per mile for the cost of moving out there. Couple that with things like tolls, parking fees and other incurred moving costs, and you’ve got a good portion of the move recouped.
- Reinvested dividends: Not so much a deduction as a way to save yourself some cold hard cash, you can keep your capital gains tax liability low by reinvesting dividends. Many portfolios that are managed will do this for you already, but few people remember to report it properly. Figure out your new cost-basis after the dividends are reinvested and you’ll keep your taxable amount lower.
- Low income tax deductions and credits: It’s estimated that only about a quarter of all citizens eligible for the Earned Income Tax Credit (EITC) actually claim it, meaning you could be missing out on a major break that’s much needed. The exact amount of the refund from this credit depends on your income, but it can range from a couple hundred bucks to thousands. And remember, if you forgot to claim it last year, you can file an amended return to see it this year!
There are tons of other opportunities to write off expenses and reduce your tax liability each year. But, without a little bit of help from professional tax services in Jamestown, ND, you’re likely not going to find them all.
Let Craig S. Hanson, CPA take a thorough look at your tax situation and see where you might be leaving money on the table. Whether it’s a few dollars here and there or a major deduction you missed, we’re dedicated to putting money back in your pocket.