If you want money saving, one area you might be considering saving in is taxes. There are many potential reasons you could get a tax break. Therefore, before filing, make sure you look into them. Here are 4 categories that might qualify:
Job search
First of all, if you switched jobs, started a business, or conducted a job search, you could qualify. You can claim the job search expenses, such as making resume copies, placement agency costs and attending seminars for careers. If you had moving costs related to your new job, this could be tax deductible. The tax moves deduction just depends on how far you moved, and how long you spent. To qualify for any of these, the job search expenses must have been at least 2% or more of the gross income for the year.
Home office
A lot of business owners are working from home today. If you use a portion of your house just for business and consistently for business, meet with clients in your house, or have a business portion of the house separate from the main home, you could qualify.
Dependents
If you had a baby, sent someone to a university, or put kids in daycare this year, you could qualify for deductions. Also, you can get deductions for every dependent you have.
Education credits
The American government gives tax credits and deductions to encourage more people to go to college. Therefore, if you, your spouse or your kids attended college this year, it could qualify for a tax credit.
What cannot qualify
The first $2400 you made from unemployment used to be tax free. However, this is no longer the case, as this provision ended as of 2010. This year, you have to pay taxes on all the unemployment benefits you might have gotten.
Conclusion
When it comes to money saving, tax deductions are one of the best ways to save. Just evaluate your situation and see which you qualify for.
Related articles
- Unusual Tax Deductions You Should Not Claim (2012taxes.org)
- Money Saving Tips Through Tax Moves (2012tax.org)
