4 Credits And Deductions That You Might Not Have Known You Could Take
Filing your taxes can be very stressful. If you don't know what you are doing, you can overpay on your taxes or get in trouble with the government for not giving the correct information. This is why it is generally best to hire a professional to help you with your taxes because they understand the tax laws and know how to get you the most money possible. For instance, here are some credits and deductions that you may not have known you could take.
1. Moving Deductions
If you have had to relocate for work in the last year, you might be able to get a deduction for all of your moving expenses. You should keep receipts from the moving truck rental, food, gas and even lodging along the way. All of these expenses can be deducted from the total amount that you owe so that you can get some of the money back from your move.
2. Energy Credits and Deductions
Another great deduction is for making your house or car more energy efficient. If you install solar panels in your home, you will not only save money on your utility bill each month, but you can also get deductions and save money on your taxes. In addition, if you buy an environmentally friendly car, you can get deductions and initial credits the year that you bought it, much like you do for the solar panels.
3. Education Credits
If you have gone back to school to further your education or if you have a child in college that you are helping pay tuition for, you should take advantage of the education credits. These credits are given to people who are in college and who are paying for their own tuition, i.e. people who are not receiving grants or scholarships. There is no reason not to take an education credit if you are paying for college for yourself or someone else.
4. Home Office
If you have a home office that you work from, often you can get a deduction. You will need to specify how much money you put into the office each year for work; this includes the depreciation of your electronics and furniture. For instance, if you bought a new computer, you can deduct the amount that the computer depreciated that year. This may seem like only a small amount, but it can save you a good deal of money over the long run.
By understanding what kind of deductions and credits you can take, you can save money on your taxes. For help with your taxes, contact a company like Capital Accounting And Tax Service Inc.