As April 15 inches closer, you should start preparing your taxes. The actual act of sitting down and filing out your 1040 form may seem stressful, but it is much easier than you might imagine. Jotting down your income from the past year and writing your number of dependents are just some standard information to record, but you should keep in mind you are allowed to claim deductions.
Deductions are important because they will help lower the amount you have to pay the government. Mortgage interest, medical expenses and property taxes are just a few common ones, but you would be surprised what else you can deduct from your taxes. Here are some deductions you may have overlooked:
Donating to a charitable organization can help bring cheer to others, but it can also be used to your benefit when it comes time to fill out your taxes. Making a charitable donation can actually be deducted from your taxes. Whether you contributed part of your paycheck to an organization or dropped off clothes at a local Goodwill store, you are allowed to make these deductions as long as you still have receipts.
Relocating can be a stressful and expensive moment in your life, but those worries can be subsided if you find out you can deduct those expenses from your taxes. There are a few parameters you must first follow before you can knock off how much you paid for moving boxes from your taxes. Moving deductions are usually reserved for those who need to relocate for employment. If you meet these requirements, you can deduct moving expenses:
- Distance test: New job must be at least 50 miles from your previous home and work.
- Time test: Must be a full-time worker, meaning you have to work at least 39 weeks during the first year of your move.
These deductions can come in handy, especially if you have to move across state or even to another country
Along with deducting moving expenses for your job relocation, keep in mind that you can deduct any job-search expenses. It can take awhile to look for a job, but you cannot make deductions for how long you spend looking through job boards. You can cover the costs of how much you spent on printing and sending resumes, placement agency charges and travel for interviews.