There are many deductions and credits that you may be eligible to claim. Bear in mind that overlooking deductions or credits that you are entitled to is like overlooking the money that should come to you. This is why it is very important that you should let the tax professionals like Holloway Tax Service take care of it for you. Bring all important tax information about yourself and your family including any IRS correspondence or forms that you might have received during the tax year with you to your tax interview.
If you have any specific questions regarding deductions or credits, simply call or visit Holloway Tax Service for further explanations.
Here are some categories of major tax deductions and credits:
1. Tax Deductions for Life-Changing Events
• Did you lose your job? Job loss expenses might be tax deductible.
• Did you search for a new job? Turn job search expenses into tax deductions.
• Did you get married? Marriage may actually save you money on taxes.
• Did you get divorced or separated? This might also affect your tax return.
• Did you have a child? Children or other dependents can mean tax credits and deductions.
• Did you adopt a child? Adoption expenses can be deductible.
• Did you go to college? Find information about tax deductible education expenses.
• Did you purchase a home? Find information about homeowner tax deductions.
2. Tax Deductions for Families and Parents
You can claim exemptions (similar to tax deductions) for qualified dependents. There are also tax credits for child care expenses and adoption expenses.
3. Tax Deductions for Homeowners
Homeowners can take advantage of deductions for mortgage interest, real estate taxes, installation of energy-efficient home improvements, cancellation of debt on a mortgage, having a home office, and more.
4. Tax Deductions for Employees/Workers
There are various tax deductions available for employees and the self-employed. There are also deductions to help you find employment. If you contribute to a retirement plan, you may be able to take a deduction or claim a tax credit.
5. Medical Tax Deductions
If you have medical expenses, such as health insurance premiums, which total more than 7.5% of your income, you may be able to deduct them. There are also deductions for contributions to health savings accounts.
6. Student Tax Deductions
There are two different tax credits (American Opportunity Credit and Lifetime Learning Credit) available for students. There is also a deduction for paying student loans. For teachers, there is a deduction for educator expenses.
7. Charity Tax Deductions
You can deduct many charitable contributions and donations. You can also take a deduction for using your vehicle for charity.
8. Standard Deduction and Itemized Deductions
When you file a tax return, you will either take the standard deduction for your filing status, or you will itemize deductions. Call us to find out which is best for you.
9. Tax Deductions for Car and Travel
You can claim tax deductions for using your car for business purposes, medical purposes, or for charity. There are deductions for travelling out of town for your job. Also, there is a tax credit for buying an electric car.
10. Miscellaneous/Other Tax Deductions
There are a number of other tax deductions and credits that do not fit into any of the above categories, such as for gambling losses, investment expenses, foreign taxes, tax preparation fees, and more.