The deadline for filing taxes isn’t until April 15th, but that doesn’t mean you shouldn’t start thinking about your return. We hope you’ve been keeping record of anything that may come in handy during tax time, remember the Prepping for Taxes article? Being organized can make your filing responsibility much smoother. The CGS Team is sharing a few common tax deductions that may apply to the members of CGS. Definitely read over these deductions and see if any can be used to help get you a bigger tax refund.
Tuition and Fees Deduction
If you attended college or grad school during the year, you are eligible to deduct up to $4,000 in qualifying fees and tuition. Keep in mind that if anyone claims you as a dependent, the deduction will not apply.
Student Loan Interest Deduction
This will help any of you CGS members who are viciously trying to pay down your student loans! You can deduct up to $2,500 in interest for the year. If you make over $80,000 annually, you don’t qualify for this deduction.
Business Use of Your Home
Does anyone run a business from home? It doesn’t have to be a full-time business, even side hustles and start-ups count. According to Go Banking Rates, to qualify for this deduction, you must use part of your home for one of the following:
- As the primary location for trade or business
- As the primary location for meeting and tending patients or clients
- As a storage facility for inventory or product samples for your business or trade
- If you have a separate, unattached structure on your property, it must be used exclusively for your business or trade
- For rental use
- As a daycare facility
Health Savings Accounts (HSAs) are tax-exempt accounts used to pay or reimburse certain medical expenses. They are typically set up when a person has a HDHP type insurance plan. Check out the Health Benefits Basics article to learn more. As a benefit of HSAs, you can claim a tax deduction on contributions you made to your HSA.
Job Search Expenses
If you itemize (as opposed to taking the standard deduction), you can deduct expenses that came from searching for a job in the same line of work as your current or most recent job. Some of the expenses that can be deducted include:
- Transportation, which includes a deduction of 56 cents per mile, parking, tolls and cab fees
- Preparing, printing and mailing out your resume
- Phone expenses
- Ad placement or Services (think LinkedIn Premium)
- Fees related to job searches
- Employment agency fees
Cash and Charitable Donations
If you donated cash or any items to charity, you are able to deduct the value of the cash or the items that were donated. To qualify for these deductions, you need to itemize your return. You can claim the Fair Market Value of the items that were donated.
- Volunteering for Charity
- Moving Expenses
- Tax Preparation Fees
- Mortgage Interest Deduction
- Home Renovations
- Unreimbursed Employee Expenses
With time flying, another year will be over before we know it. Start thinking about the deductions that could apply to you and make sure to keep any supporting documentation to prove you qualify. What deductions do you take advantage of? Do you itemize or take the standard deduction? Leave a comment below to start a group discussion!