Tax season is just another frustrating, nerve-wracking annual stress session for both business owners and regular individuals. From the various forms to complete, deductions to consider, tax advisors to discover, and potential fees owed, there is a lot of tax season that is hard to navigate.
For many, all of these responsibilities prevent us from finding the time or desire to dig into possible deductions we qualify for. There are many different ways you can see a better refund, or be looking at less debt owed back to the IRS, but not everyone knows exactly how to find or qualify for these kinds of deductions.
3 Commonly Overlooked Tax Deductions You Could Qualify For
Qualifying for deductions always seems so difficult, and unless you have skilled tax services who can look at all of your documentation and spell it out for you… finding a way to save money you actually qualify for is pretty tough. Here are 3 really common deductions that most American’s can cash in on.
1. Medical Expenses Can Be Deducted
Did you know that medical debt, along with student loans, are what make up most of the debt that American’s pay? Well, the IRS knows it, and they have allowed for a small tax break for those with major medical expenses.
Some people already know about this possible deduction, but they don’t understand how easy it is to qualify for. If you medical expenses equal to at least 7.5% of your income, you can file for a deduction if you have the receipts and statements to prove your claim. You need to have an itemized deductions list, but you’ll see a nice tax break if you can qualify for this with your medical debt and expenses.
2. Part-time Rental Deductions
Since Airbnb and other similar home rental services have grown in popularity and have now become a commonplace option, many homeowners have started to rent out a room or two for some extra income. It can be a lucrative option, until tax season comes and you have to pay that income tax on what you made.
What if you didn’t have to pay that tax, though? As long as you keep your rentals to 14 days or less within a year, you don’t have to pay a single thing on what you made. It’s not exactly a deduction, but it can help you keep more of your refund, so it definitely helps!
3. Mortgage & Refinancing
Most people know about what they can do with their homeowner credits with their taxes, and those who rent know they can claim up to a certain percentage of their rent a year to help their refund. The price of life is so high for so many, and mortgages are becoming a common way to deal with financial emergencies.
What you may not know is that you can apply that to your deductions. When you refinance or fully pay off a mortgage, you can use all those extra points that weren’t deducted in previous years and apply it to that year’s tax season, and get a nice deduction!