12 profitable tax deductions and refunds you can get
There are many tax deductions that you can request in your tax account, which can either reduce your debts or increase your tax return. You may already be familiar with some of the most common charges, such as property taxes, but there are still many deductions that are easy to miss. Writes about this CNet.
Here are some of the best tax deductions you can claim.
1. Tax credit
The tax credit is intended for college students during the first four years of college or other higher education. If you want to get a degree or otherwise go to college and you haven’t been convicted of serious crimes at the end of the tax year, you may be eligible for benefits.
Your income must be $ 80 000 per year or less to receive the full amount of the loan. If your income is from $ 80 000 to $ 90 000, you will still get a loan, but for a smaller amount.
2. Student loan
While a tax credit is intended for beginner students, a student loan is intended for graduate students. To get this loan, you, your spouse or dependent must pay the corresponding costs of higher education. You cannot claim this loan if your income exceeds 67 000 dollars per year.
3. Income tax rebate
If you get low or medium income, income tax credit reduces the amount of tax you owe. Or it can give you a tax refund (or increase it).
The IRS usually sends letters to people who may qualify for this loan. You will need to file a tax return and you may receive a loan for previous years.
4. Credit for children and dependents
If you are caring for a child or other dependent in your family, you can get this loan. Total costs cannot exceed 3000 dollars for one person or 6000 dollars for two or more dependents per month. The costs are directly related to the well-being and protection of the child or the dependent, especially if they are not able to physically and mentally take care of themselves.
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5. Depositor loan
If you make the appropriate contributions to your IRA or to your employer-sponsored retirement plan - for example, 401 (k) - you may qualify for a contributor loan.
The loan rate varies depending on your income, but most likely you will be denied a loan if you earn more than 64 000 dollars, if you are married and file a joint declaration.
6. Children's tax credit
Tax credit per child can save up to 1000 dollars for each child. Each child must be younger than 17 years old and must be yours: a child, stepson, adopted child, brother or sister, step-relative, grandson, nephew / niece or adopted child.
In your tax return, this child must be declared dependent on your income.
7. Adoption Tax Credit
There are tax incentives in the form of a tax credit for adoption, intended specifically for expenses related to adoption. The loan covers legal costs, expenses for a lawyer, travel and other expenses that are directly related to adoption. As of 2018, the maximum dollar amount is $ 13 810 per child.
8. Medical and dental expenses
Even with insurance, you may have to pay medical expenses from your pocket. You can deduct these expenses for you, your spouse, or any of your dependents if the total amount exceeds 7,5% of your income. Possible expenses include:
Payment of dental services and services of psychologists.
Hospital care, care in nursing homes and acupuncture.
Treatment for alcoholism, drug addiction, smoking cessation programs, and prescription drugs to quit nicotine and related addiction needs.
Payment for insulin, glasses, contact lenses, hearing aids, crutches, wheelchairs, guide dogs and other service animals.
9. Household Energy Credit
For a low-energy homeowner, you can get an energy loan for your stay. The loan includes:
- Energy efficient heating and air conditioning
- Water heaters
10. Student loan interest deduction
Repaying your student loans can be frightening and sometimes costly, but you can save a little by deducting interest on your student loan.
If you paid interest on an appropriate student loan for you, your spouse, or another dependent, you can apply for a tax loan. You may require a deduction as an adjustment to your income. You can deduct either 2500 dollars or the actual amount of interest paid by you during the year.
11. Contribution to Health Insurance
If you have a savings account, contributions to it are not subject to federal income tax. You can also claim a tax deduction for contributions.
Contribution limits depend on your health insurance plan and your age.
12. Charity contributions
Charity contributions are one of the most common ways to get a tax deduction. You can deduct contributions of money or property that you donated to competent organizations, but you will need to indicate your deductions.
In most cases, you can deduct up to 50% of your contribution, but in some cases you can be limited to 20% or 30%.
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