Everyone uses tax write-offs, credits and deductions to get the chance to save a little bit of money. The most common deductions are the easiest to find, such as medical expenses and travel. Most people try to find every single way they can save as much as they can and keep every receipt in the hope of finding a way to an extra buck or two.
In our troubled economy, we have to find these opportunities to maintain our cost of living. Few people know there are even more deductions that fall under a different category: Miscellaneous Deductions. These must be filed under Schedule A of your Internal Revenue Service tax return, but the extra savings can be very helpful. Below are a few of the deductions that be filed under miscellaneous deductions.
Most of the time people don't think about tax benefits from selling your home, only owning and buying new ones, but there are some you can take advantage of. The fees that you get from your real estate agent for their commission can be deducted. You may also deduct your property tax for the time you spent in the home during the selling process, even though it will only be a portion. Every little bit helps, though, and this is an easy way to line your pockets on a transitional period in your life.
In Arkansas your sales tax has to be paid when you first buy the car. Once you have that paid, you don't have to worry about it again. In other states, however, you may pay it every year! You can deduct a percentage of the vehicle tax based on the car's appraised value that year as part of your property taxes. Keep that receipt, and save what you can if you're in one of those unlucky states.
Giving small things like clothes or smaller pieces of furniture is not only a good deed, but will reduce your taxes by using them as a part of your miscellaneous deductions. Few people know not only the cost of the item can be deducted, but also any fees by an appraiser to assess said charitable donation! This applies to any item that is worth more than $500 and can be appraised by a professional.
Traveling expenses are called expenses for a reason: they can be very expensive. We all know to deduct hotel stays and travel miles, but you can also deduct your cleaning bill. Keeping your receipts from your cleaning services can not only give you a professional look but can save you more money by adding to your deductions.
Using these Miscellaneous deductions can give you a better return than not using them. It may be a little extra work keeping the receipts and filing a different part of the form, but getting more money is always a worthwhile investment. Using a professional grade tax software like Online Tax Pros can also save you money and get you a quick, quality tax return. Visit our website and let us show you how much you can save this tax season!