Few tax benefits you didn’t know existed
While we all are worried about filing the tax returns with the best possible audits, most of us are also taking a closer look at the tax benefits and deductions. Tax deductions are important for taxpayers as these amounts can be directly deducted from the gross income. Right from getting the best investments to saving the receipts of health insurance premiums, smallest of these expenses can save you a lot more during your tax filing. Let us take a look at some of the tax deductions or benefits that you did not know that existed.
Health insurance premiums
Medical expenses can cost you a fortune and therefore, there are provisions that help in saving tax with the health insurance premiums.
Sales taxes
Sales tax can also be deducted from the federal income tax. This provision can be a big money saver in the states that do not have arrangements for their own income tax.
Charitable gifts
These gifts make for a great money saving option under the federal income tax. It is useful to save the receipts and itemize them once the tax audit takes place. For instance, if you are baking cakes and using the funds to pay for a charitable organization, the cost of ingredients can be used as tax deductions.
Investments
Investments are one of the core benefits of tax refunds. Some of the tax deductions under investments include individual retirement agreements, capital losses, the sale of a home, etc.
Other tax benefits are:
- Cost of the babysitter
- Lifetime learning credit
- Unusual business expenses
- Self-employed social security
So, if you are looking for more information on tax benefits and deductions, visit the official website of IRS for a detailed list.