Every year taxpayers are always overpaying for their taxes because they overlook the money-savers due to lack of knowledge. Here are a few things that can help you save money on your taxes this year.
Student-Loan Interest Paid By Mom And Dad
You can deduct interest on a loan if you are legally required to repay the debt. Therefore, if parents are paying back a child’s student loan, the IRS treats the transactions as if the money were given to the child who then used it to pay the debt. As long as the child is not considered a dependent, they can deduct up to $2,500 of student-loan interest paid by mom and dad each year. They don’t have to itemize ether to use this money saving method.
Job Hunting Costs
If you were unemployed for 2015 and were in search of a job, let’s hope you kept track of the expenses it took for you to job search. If you were looking for a position in the same area as your current or most recent job, you can deduct job-hunting costs as a miscellaneous expense if you itemize. Deductible costs include transportation expenses, parking, lodging, and printing and advertising costs.
State Sales Tax
If you live in a state that does not impose as state income tax, you are in luck because Congress is offering itemizers the choice between deducting the state income taxes or state sales taxes they paid. You will end up choosing whichever option gives you a bigger deduction. Therefore if you live in a state that doesn’t have income tax, the sales tax write-off is prime. Even people who live in states who impose a state income, can come out ahead with the sales tax option. Various states offer a deduction based on your income and state or local sales tax. You can even add sales tax to vehicles boats, or planes that you may have purchased.
Military Reservist’s Travel Expenses
If you are a member of the National Guard or military reserve, you can write off the cost of the ravel that it takes you to get to drills and meetings. In order to qualify, you have to have traveled more than 100 miles from home and be away overnight and if you qualify, you can deduct the cost of lodging and half the cost of your meals as well as your allowance for driving your own car.
