Posted on April 12, 2016 by Krysta Cossitt
The IRS expects more than 150 million tax returns will be filed this year. The IRS also says that about one quarter of Americans wait till the last two weeks to file their taxes – are you one of them? Not to worry! Unlike most years where the deadline is April 15th, you do have a couple extra days to get your files in order…or file an extension. Monday, April 18, 2016 will be the official deadline to file taxes due to the Washington D.C. Emancipation Day holiday which will be observed on April 15th this year.
Below are some often overlooked tax deductions that you can take advantage of this year and keep in mind for next.
Tax Deduction: Wildfire Mitigation
For all you Roxborough homeowners that have purchased equipment and/or have hired contractors to cleanup wild-fire prone property, you may be eligible to deduct those expenses from your federal taxable income. You’ll need to have saved your receipts and/or invoices to subtract 50% of the expenses so this may be a bit of a chore in itself. However, this tax deduction does add up as you can subtract as much as $2,500. So what is “wildfire mitigation?” Wildfire mitigation includes the thinning of woody vegetation for the primary purpose of reducing the risk to your home or any other structure from wildfires. Click here for more information.
Tax Deduction: Charitable Contributions
There are a lot of amazing Roxborough residents that give back to this community and beyond. Those charitable contributions can be great tax deductions. Deductible charitable contributions include money or property you give to organizations such as churches and religious organizations, local government and nonprofit schools and hospitals. Other organizations, just to name a few, are The Salvation Army, Red Cross and By Scouts and Girl Scouts of America.
Do you have a sponsored student living with you? Foreign and American students that live in your home that are sponsored by a qualified organization may qualify you for a tax deduction. Expenses like books, food, clothing, transportation and medical could all be deductible.
Your out-of-pocket expenses for when you volunteer at qualified organizations may also be deductible. For example, the cost of gas and oil directly related to the use of your car when volunteering are deductible. Similarly, travel expenses such as transportation, lodging and the cost of meals can be deducted if you are performing services for a qualified organization away from home.
Tax Deduction: Job Search Expenses
Finding a new job can be stressful but keep in mind that those expenses you incur could be tax deductible. Expenses incurred while searching for a job in the same line of work as your current or most recent job may qualify. Deductible expenses include transportation, parking, tolls, preparing and printing your resume, phone expenses, ad placements, employment agency fees and fees related to job searching. You won’t be able to deduct job search expenses if their is a substantial break between the end of your last job and the time you begin your new job. Also keep in mind that you can’t debut job search expenses if you are looking for a job for the first time. For more information, please click here.
Tax Deduction: Tax Preparation Fees
That’s right – you can deduct fees associated with preparing your taxes. Whether you filed your taxes yourself or paid someone to do them for you, you can include those expenses on your miscellaneous tax deductions list. This includes electronic filing fees as well.
Posted In: Informative
Tags: 2016, Tax Deductions, Tax Tips