Tax Deductions – The latest statistics show there’s about $1.2 trillion worth of tax deductions. So you want to make sure you’re not shortchanging yourself and get what’s rightfully yours. For example, if you turned 65 years old in 2017, you have a right to a bigger standard deduction then others.
Gambling and lottery tickets are tax deductible
That’s right, if you won money in a lottery, you can deduct the cost of the losing tickets for the year as an itemized deduction. Please note that the deduction is limited to the amount of lottery winnings. The same goes for gambling.
There are numerous job-related tax deductions
There are many job-related ways to maximize your tax refund even when you’re working for someone else. Equipment such as computers and cell phones make the list when they’re used for conducting day-to-day operations. Your employer must require you to have this gear as a condition of employment and you must use them for the convenience of your employer. You have to be able to keep track of the usage to determine its percentage.
More work-related miscellaneous tax deductions
There’s a bunch of miscellaneous items that fall under job-related expenses but aren’t in a specific category such as medical insurance. For example union dues, subscriptions to trade publications, memberships to professional organizations, certifications, even uniforms as well as their upkeep, and other tools that help you do your job.
Parents-paid student loans are now tax deductible
In the past, when mom and dad paid off a student loan there were no tax deductions. Only if the student in question paid if off, the loans were deductible. But today, the IRS treats it as though parents gave money to their child and he or she paid it off. Meaning that if a child isn’t claimed as a dependent, they can qualify for tax deductions of up to $2,500 of student loan interest paid by his or her parent.
Health insurance in some cases counts as tax deductions
Medical expenses are tax deductible if they exceed 7.5% of your adjusted gross income for tax years 2017 and 2018. Of course, if you’re self-employed and pay for your own health insurance you may be able to deduct your entire premium cost. Get advice from a professional and experienced accountant to know more about deducting your medical expenses.
Teachers get up to $250 in tax deductions
With budget cuts everywhere, most teachers these days buy supplies for their classrooms from their own pockets, that’s why the IRS allows K-12 educators to deduct up to $250 for materials. The amount gets subtracted from the income, even if it’s not itemized.