Articles
3 Little Known Income Tax Deductions You Can Use When Filing Your Taxes
by John Smith LearnerDid you know that Americans alone
claim more than a trillion dollars on their income tax returns each year? The IRS
reports that of all the silly mistakes we make on our tax returns each year,
the one that deserves special attention is not allowing enough deductions.
For example, if you've just
turned 65, your bonus is that you'll claim a higher standard deduction over 65 than the
rest of us. Of course, paying taxes is good for the country. That means more
roads and more schools can be built, but who wants to pay the IRS more than
they already have? So what are the income tax deductions that we all miss most
of the time?
Investing in mutual funds: Most
mutual fund investors have the option to turn on automatic reinvestment in
their stock holdings. Whatever you earn from your dividend investment is
reinvested only in buying the same shares for you. It just forces you to deal
with higher taxes that come from larger assets. The important thing to remember
is that when people put money into investments, they forget that they paid
taxes when those stocks were originally purchased. The result is that they pay
taxes again. You should keep track of how many shares you have invested in at
the beginning and how many shares you have at the end of the term. However, it
can't be a hard discount because you shouldn't be paying twice for anything.
Job hunting: If you've been
diligently looking for your first job out of college in the last few months,
you may have gone on an interview — unfortunately, none of these expenses are
allowed as income tax deductions. However, if you get that job and it requires
you to pack up and move to another state, those expenses are definitely
allowable deductions. Most people get confused by thinking that anything you
spend before you are employed is deductible. it's not. Another important thing
to remember is that this doesn't just apply to your first job, but to every job
you move on to.
Sponsor Ads
About John Smith 
Learner
148 connections, 8 recommendations, 646 honor points.Joined APSense since, February 15th, 2018, From New York, United States.
Created on Dec 6th 2022 04:06. Viewed 151 times.
