It's tax season! Time to dig out those old receipts, get those w-2's, and visit your local tax preparer (or just do your taxes online).
There are several tax deductions that you shouldn't overlook this tax season to make sure that you get your maximum refund (or lower your tax bill as low as possible).
- Charitable Causes: If you've donated money to any non-profit organization you can deduct those donations from your taxable income. You can also deduct for time spent volunteering with non-profit organizations, clothing donated (pretty much any non cash donations) and your mileage to and from helping with the charitable cause.
- Medical Expenses: Medical expenses can be deducted from your taxable income as long as they make up 7.5% or more of your adjusted gross income (AGI). You can claim out of pocket expenses from when you've had doctors visits, medication expenses, visits to chiropractors, massage therapy, pretty much any expense that can be proven to have some benefit to your health. You can also deduct the mileage that you spent getting to and from medical appointments.
- Student Loan Interest: You can deduct up to $2500 in student loan interest per tax year. There are some stipulations to deducting student loan interest that you should talk to your tax preparer about but in most cases if the student loan is in your name, then you have the right to deduct this expense.
- Tax Preparation: You are allowed to deduct the expense for your previous years taxes if they exceed 2% of your adjusted gross income. This includes the fee for the tax preparer, tax preparation software, books, and informational guides on tax preparation.
Another way to maximize your previous year's taxes just to make sure that nothing was overlooked is to try out H&R Block's free 2nd look service. They will go over your previous years taxes (up to 2 years back) to make sure that there wasn't anything that you may have qualified for that would've increased your tax refund (or decreased your tax bill). You can also start your taxes for FREE through H&R Block online.