Top Tax Breaks
It is fairly safe to say that no one likes paying taxes. Although taxes exist for a reason, it is often difficult to part with your hard-earned money and give it to the government. What a lot of people don’t know is that there are many tax breaks that individuals can take advantage of. Tax breaks are exemptions or deductions from the amount you pay in taxes. Here are a few of the commonly overlooked tax breaks for the United States.
1. Charitable donations. If you donate to a qualified nonprofit organization, you can get a tax break. If you make a cash contribution, you’ll need documentation to prove you made the contribution. If you make a noncash contribution, you’ll need a receipt from the organization for proof.
2. Child and dependent care. If you pay someone to care for your child under 13 while you work or look for work, you can receive a tax credit for that money.
3. Education expenses. If you are a student, you may be able to receive a tax credit for tuition-related expenses while you are in school. There are actually several tax credits available to students (American Opportunity Tax Credit, Lifetime Learning Credit), so make sure to do your research and find the one that is the best fit for your financial situation.
4. Job expenses. If you are in school or training for your current job, you may be eligible to be reimbursed for these expenses. This is only an option if your boss or company doesn’t reimburse you for these expenses as part of the job.
Tax breaks are a little known fact about the American taxation system. Taking a look at this list can help you see whether you qualify for any of these commonly overlooked tax breaks.