Tax season can often feel like a whirlwind that sneaks up on you unexpectedly. One of the best ways to stay prepared is by actively tracking potential tax deductions all year long. So, why wait until the last minute? Start by collecting your receipts now to ensure that you maximize your tax refund or reduce the amount of taxes you owe.
As you gear up to file your taxes, TurboTax will help identify the tax deductions and credits you qualify for based on some basic questions. To assist you in planning ahead, here are 10 valuable tax deductions and credits to keep in mind as you gather your receipts for tax season.
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Education Expenses
- Consider the American Opportunity Tax Credit and the Lifetime Learning Credit for educational costs.
- Remember to include expenses like books and lab fees when calculating these credits.
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Childcare
- Child and Dependent Care Credit can be claimed if you paid for care for children under 13 while you worked or looked for work.
- Note that this credit does not cover overnight camp expenses.
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Health Insurance
- Self-employed individuals can deduct health insurance premiums for themselves and their families.
- For non-self-employed individuals, health insurance premiums may be deductible if itemizing deductions is possible.
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Medical Expenses
- Keep track of medical expenses like mileage (at 21 cents per mile) that exceed 7.5% of your adjusted gross income and can be itemized.
- Some medical expenses, like home exercise equipment, may be deductible with a doctor’s recommendation.
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Charitable Contributions
- Save donation receipts to potentially deduct them, regardless of the amount donated.
- Remember you can’t deduct the value of volunteer time but can claim travel expenses related to charity work.
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State and Local Taxes
- Choose to deduct either state income tax or state sales tax if itemizing deductions.
- TurboTax will suggest the best option for you, and the total deduction is capped at $10,000.
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Home Office
- Self-employed individuals with a dedicated home office space can deduct a portion of home expenses.
- Following tax reform, employees can no longer deduct at-home expenses on federal taxes.
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Miscellaneous Deductions
- Unreimbursed job expenses and tax preparation expenses are no longer deductible following tax reform.
- Uninsured losses due to natural disasters exceeding 10% of adjusted gross income may be tax-deductible.
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Other Dependent Credit
- If supporting a non-child dependent, you may qualify for a $500 tax credit per dependent.
- Mileage Expenses
- Self-employed individuals can deduct business mileage at 67 cents per mile in 2024.
- Maintain a mileage log for all business-related travel, including between job locations.
Being mindful of these expenses throughout the year will ensure you don’t miss any tax deductions or credits when filing your taxes. TurboTax will transform all your financial moves from the previous year into significant tax advantages. Whether you prefer to handle your taxes independently or with TurboTax’s expert assistance, rest assured that you’ll receive the maximum refund you deserve. Trust TurboTax to make tax season stress-free and rewarding for you.
