Now more than ever, people are pinching pennies, which can also mean most people prefer to get the most benefit out of their yearly tax returns. In order to receive the best breaks with your taxes, you have to know about all of the deductions you qualify for, and it could be more than you realize. Consider these deductions that are most commonly overlooked and ask your accountant if you could qualify.
Student Loan Interest
If your parents do not claim you but they’re paying your student loan interest, or if you’re paying your student loan interest yourself, you can deduct up to $2500 in paid interest on your student loans. It doesn’t necessarily equate to a huge tax refund, but every little bit quantifies.
Further Education or Tuition Deductions
If you’re an adult taking some form of continuing education, or if you’re paying regular college tuition for yourself, a spouse, or a dependent, this can be claimed as a deduction. The further education credit, specifically, is nothing to sneeze at as it can be worth up to $2,000 per year. For regular tuition, you can claim up to $4,000 per year.
Job Search Expenses
The last couple of years have wreaked some havoc on job security in all job fields, but did you know that you can claim job searching expenses on your tax returns? To qualify, you must be looking for work in the field most recently relevant to you. Your transportation costs, expenses related to creating and mailing your resume, and any employment agency fees can all be itemized for credit.
Working from Home
After the conditions surrounding the pandemic, many businesses have converted staff to being remote workers on a more or less permanent basis. If you’re new to working from home, you might not know that you can deduct home office space on your tax returns. Whether you have a designated home office space or your answering emails from your dining room table, this deduction is worth looking into. If you qualify, you may be able to deduct expenses that wouldn’t normally be related to your business, but that also facilitate your ability to maintain your livelihood working from home. Examples of deductions include utility bills, mortgage interest, depreciation, and even rent.
Disaster-Related Losses
If you or your family has fallen victim to an incident resulting in a casualty, a home disaster, or theft, your potential benefit doesn’t end with your insurance coverage. These losses can be claimed on your tax refund as a means to help recoup what you might have lost, at least monetarily.
Conclusion
If some of these tax deductions seemed completely out of the blue for you, just know that there are many more claimable deductions that are commonly overlooked. If you think that some of them could apply to you, consult your tax accountant to find out what you qualify for and what you don’t. You may even learn about other deductions not mentioned in this article. In this season of financial tension across the country, every small thing you can claim certainly does add up to getting the tax refund you deserve.
