Preparing taxes is a very important part of your family budget. If you don't understand what kinds of deductions you qualify for and what kind of credits you can get, you could easily overpay on your taxes. This is why it is important that before you file your taxes that you understand what to look for. Here are some easy deductions and credits that you may not know about that could save you money.
If you, your spouse, or a dependent child is in college you might be able to get an education credit. Many times the government will reward you for furthering your education and paying tuition to a academic institution. You should be given a breakdown from the school of the money that you paid to them throughout the year. You can input these numbers into your taxes and then opt to get an education credit. This will be an amount of money that is simply returned to you, it is not a deduction, but an actual credit.
2. Moving and Relocation
If you had to move or relocate because of work you might be able to deduct those costs from your taxes. When you move you should keep track of the amount of gas you paid, expenses for the moving company or rental truck, and even hotel stays and food along the way. These expenses can be deducted from the amount that you owe in taxes that year.
3. Medical Expenses
Most people have a good deal of medical expenses throughout the year. This includes medical insurance premiums, money spent at doctors offices and hospitals, and even medical supplies that you bought. Much like moving, these expenses are not considered a credit, but a deduction that you can take off of the amount of taxes that you owe.
If you are self-employed there are a lot of options for deductions and credits. Many times you have a good deal of expenses and overhead to keep your business running. For instance, if you work from home you can deduct your home office, like your computer, office supplies and so forth. In addition, you can deduct gas that you used for driving to meet with clients, rent paid for an office and so much more. There are many deductions for self-employed, there is no reason that you shouldn't be able to deduct a good deal of money from your taxes.
By understanding the credits and deductions you can take you can save money on your taxes. For more information, get help with taxes by Grenning & Co or another location.