Everyone loves to find ways around giving Uncle Sam his cut in taxes to help preserve more capital and assets for you. Makes sense considering you earned the money and most people could use it to pay off bills, vacation, retirement, etc. Every year people nitpick to find little tax breaks that do not really save them money, while in the process, overlooking some big tax deductions that would make an impact. Here are five commonly missed tax deductions that are missed consistently every year that would help you keep a nice share of cash from Uncle Sam.
- Driving to a fundraiser or volunteer work. The actual volunteer work is not deductable but the transportation costs are, however, deductable. When you drive to an event that is considered volunteer work, you must claim a number of miles driven or a total cost in gas used in the process. This will get you a nice little tax cut. However, volunteer work does not mean taking someone you know to the hospital or something of that nature. Volunteer work is considered working for a charity, church, school, etc.
- Magazine and TV deductions. The government will give you tax relief if you are self-employed and you subscribe to a magazine that goes along with your self-employment. For instance, if you are a day trader and you subscribe to SmartMoney, the government will give you a tax break because it coincides with your self-employment. The government cuts taxes also for actors on their TV bill because they can claim to be keeping an eye on other actors or competition.
- Multiple home buyers. If you own a house, you are eligible for the “$8,000 credit for first time buyers”. However, few people know that if you own more than one home you are subject to a $6,500 credit. This $6,500 goes straight into your bank account, not a tax deduction. Despite not being a tax write-off you still get a nice chunk of change from the government. If you own multiple homes, tell the government and they will reward you in this time of the housing slowdown.
- Disaster Relief. If you were affected by a federal disaster this year you may be able to write your losses off on your taxes. Examples of a federal disaster are hurricanes, tornados, wild fires, etc. It has to be a situation that essentially caught the attention of the federals. You can write off items that were lost including your property. Here is the catch when you are writing down the value in your taxes you cannot declare the price that you purchased the item at. You must determine the price as if you were to resell it. Either way it still helps the bottom line.
- Job Relocation. If you had to relocate because of your job or business there may be a tax deduction for you. The government requires that you claim a distance and time for your move and the deduction will be decided from there.
When it comes to taxes you should count all your deductions. They can add up and really save you some money that can be used more efficiently or put to better use. Don’t cheat yourself out of your deductions, if you think you are eligible then claim it on your taxes or tell your tax accountant about it and get a bigger refund on your taxes.