This is a guest post from our sister product, ExpressExtension.
Becoming aware of great tips on how to save money benefits you, your family, and even your business! There are many money saving tips and new tax deductions 2018 that you need to know about before filing your annual income tax return. Although it is not officially “tax season,” it never hurts to get a head start on preparing for your tax filing by keeping track of the tax deductible expenses that you have accumulated throughout the year. Today, we will show you how to save money with new tax deductions 2018.
How To Save Money With New Tax Deductions 2018
The moment you’ve been waiting for! Here are some of the easiest ways to save money throughout the year, especially when handling your tax filing needs:
Homeowner Tax Deductions
- Mortgage insurance premiums
- Interest paid on your mortgage
- State and Local real estate taxes
Note: If you sold your home this year, you can deduct real estate taxes that were paid during the closing of the sold property.
Local & State Taxes
State income taxes or local and/or state sales taxes that you paid during the year can be deducted. For those that live in a state that does not have a state income tax, it is best to take advantage of the sales tax deduction.
Donations to IRS-approved charities can be deducted up to 50% of your income. These gifts must be reported as itemized deductions and can include everything from writing a check to the cost of mileage used to deliver a tangible donation (food/clothes donation, etc.). You can even deduct the amount spent on having a neighbor watch your children while you drop these items off…shocking, right?!
Note: Donations greater than $250 made to an organization must have a written acknowledgment to receive the deduction.
Medical & Dental Expenses
If you have health insurance but continue to pay for medical or dental expenses out-of-pocket and they exceed 10% of your adjusted gross income, costs such as long-term care, chiropractor appointments, and other health-related expenses can be deducted.
While contributions towards your 401(k) retirement are not considered tax-deductible, they can be used to decrease the amount of your taxable income, which could possibly shift you to a lower tax bracket and save you money in the long run.
Educators that spend their personal money on classroom supplies can deduct up to $250 on their taxes ($500 if you’re married to an educator.
Education/Student Loan Expenses
Good news! The money that you spend on paying off your personal, spouse’s, or child’s student loans can be deducted up to $2,500 (of the loan’s interest).
Job Search Expenses
Looking for a new job in the field that you currently work in? Expenses such as travel for interviews, resume editing fees, and employment agency fees can be deducted.
Note: This deduction does not apply to first-time job hunters.
Child/Dependent Care Expenses
Caring for a parent or child can be very expensive. When filing your taxes be sure to list expenses for medical supplies, nursing home care, and in-home care if the person you take care of qualifies as a dependent.
Jury Duty Pay
If you are required to report for jury duty and handed over your work pay to your employer (because they paid your salary while you served), your jury duty pay can be deducted from your taxable income.
Loss from Disaster
You can claim unreimbursed losses as itemized deductions per IRS guidelines for losses due to theft or disaster.
Yep, you read correctly! If you host your wedding at a church, nonprofit, or historical site, you can write that fee off as a charitable donation.
More Itemized Deductions & Tax Credits
We told you there were a ton of deductions and credits! And that’s just the first set of them. Here are some more common tax deductions you can be on the lookout for this Fall season:
- Legal Fees
- Working Kids
- Earned Income Tax Credit
- Child Tax Credit
- Child and Dependent Care Credit
- Adoption Credit
- American Opportunity Credit
- Lifetime Learning Credits
- Elderly or Disabled Credit
Keep Record of Tax Deductible Expenses
Now that you know all about how to save money with tax deductible expenses and new tax deductions 2018, it is extremely important that you keep a record of these deductions and keep your business tax compliant with the help of TaxBandits. Whether it is a 1099/W-2 form for your employees or an extension of time to take care of your annual tax filing requirements, TaxBandits helps you take your time back so you can focus on what matters most–growing your business!