Deductions to Consider When Filing Your Return

Sure, you’ve heard of write-offs, but what do they really mean? These tax deductions can lower your year-end tax bill and increase your refund. While some are no-brainers, others may surprise you… so before you write off that dinner last week with your boss, read our guide on what deductions to consider when filing your tax return. 

Medical Costs

The IRS knows medical costs can add up, so they allow itemized deductions after 10% of your adjusted gross income (AGI). And if you’re self-employed, you may even be able to deduct 100% of your premium. Health Savings Account (HSA) contributions may also be deducted if your employer offers one.

Charitable Donations

Whether you’re donating old clothes to the Salvation Army or throwing a pizza party for a non-profit, any out-of-pocket expenses that are for charity can count as deductions... so save your receipts, even if they’re from Dominos.

Tuition and Continued Education

The Lifetime Learning Credit may provide up to $2000 a year for those who are spending on furthering their education after high school. This could be either for a college student or college graduate -- there is no age discrimination when expanding your mind. Tuition and school fees up to $4000 also count for those who are currently enrolled.

Student Loan Interest

Still paying off student loans? We, along with all millennials everywhere, feel you. But the good news is that a student can deduct up to $2500 in student loan interest if they’ve made regular payments throughout the year.

Childcare

Paying a babysitter while you’re at work? Sending your kids to after-school daycare? The Child and Dependent Care Credit allows you to reduce your tax bill by the dollar for care expenses up to $3000 for one kid, or $6000 for two or more.

Home Office

Do you have the privilege of working from home? If so, the IRS allows you to deduct a portion of your rent/mortgage, utilities, and other costs related to work like your computer and that ancient printer taking up half your desk. 

Mileage Reimbursement

If you’re still driving to work, and frankly very mad about it, the IRS allows a 58 cent per mile deduction through the Mileage Reimbursement Deduction. This can also cover car insurance, maintenance, and parking… which you’ll celebrate as soon as you get out of the grid of the 405.