In an attempt to save money, many individuals decide to prepare their own income taxes each year. Unfortunately, doing so can actually cost them money in the long run. This is because many people tend to overlook many tax deductions that they could have taken advantage of. Whether you plan to file your income taxes on your own or seek Tax Consulting Galt CA to assist you, it’s important to be aware of some of the deductions that many people overlook each year.
One of the most common overlooked deductions is charitable contributions. Many people have the misconception that you only donate to charity by giving them money, but that’s simply not true. Anything that you donate to places like Goodwill or The Salvation Army is considered a charitable contribution and can be deducted on your taxes. Keep in mind that if you donate goods to one of these charities, it’s a good idea to get a tax statement just in case you get audited. When possible, it’s also a good idea to get a receipt for cash donations that you make to prevent any discrepancies on your tax return.
Many people also don’t realize that you may be able deduct medical expenses. Keep in mind that medical expenses have to equal 7.5% or more of your total adjusted gross income for you to take advantage of the deduction. If you think that it’s impossible for you to deduct medical expenses, you should know that all of your prescriptions, doctor co-pays, prescription glasses and hearing aids are included when figuring your taxes. You are also able to deduct some of the expenses you incur while traveling to and from the doctor, such as millage and parking fees. Be aware that if your employer reimburses you for medical expenses, you’re not allowed to deduct any of them on your tax return.
If you’re a parent who pays for child care, be sure to deduct those expenses. Both full-time daycare and after school daycare expenses can be deducted on your taxes. Keep in mind that in order to qualify for this deduction, both parents have to work. If you’re ready to have professional Tax Consulting Galt CA so you can maximize your deductions, you should visit web to schedule an appointment with one of their consultants. They will be able to help you find any deductions that you may have missed.