Tax filing deadlines are quickly approaching! Have you filed yet?
If not, this might be a good opportunity to explore overlooked tax deductions that might help lower your tax bill. Most of us are aware of common tax deductions like mortgage interest and charitable contributions. However, there are a handful of lesser-known tax credits and tax deductions that could help you save money. Browse through these categories to see what might apply to you!
Childcare isn't cheap! If you paid for childcare while working or job hunting, then you likely meet the criteria for this overlooked tax credit. Typically, your child must be 12 or younger and considered your dependent.
This credit also applies if you're paying someone to care for a spouse or dependent (irrespective of their age) if they are incapable of self-care.
Keep in mind - in most instances, you'll need to acquire the care provider's social security number or taxpayer identification number to include it on your tax return. 🔮
P.S. If you're a low to moderate income earning family looking to buy a home, you may also want to check out our generous WISH Grant Program!
Besides the obvious healthcare costs, travel expenses to and from appointments, medically justified home improvements and even some alternative treatments may be tax deductible.
Contributions made to your HSA are also eligible for tax deductions. Not only do the funds in your HSA account grow tax-free when used for qualified healthcare expenses, but your contributions can also help lower your overall tax liability. Talk about making the most of your HSA. 👌
Attention business owners! The IRS allows taxpayers to claim a portion of their home-related expenses, such as mortgage interest, property taxes, utilities and even a percentage of rent. This tax deduction is calculated based on the percentage of the home used for business, offering a practical way for self-employed individuals and remote workers to recoup some of the expenses incurred while conducting business from the comfort of their homes.
Did you know? A Business High-Yield Savings Account1 or Business Certificate of Deposit2 offers higher returns than the typical Business Savings Account. Open one and watch your savings multiply!
How to deduct my home office expenses? >>>
Whether you're enhancing your skills for your current job or investing in a new career path, some educational tax deductions can put extra cash back into your pocket. The Lifetime Learning Credit and the American Opportunity Credit are two valuable options - offering up to $2,500 and $2,000, respectfully. These credits cover qualified education expenses, including tuition, fees and course materials. 🍏
Have you invested in solar panels, energy efficient windows or a new HVAC system? Energy-efficient upgrades for your residential home could be eligible for tax credits. The Residential Renewable Energy Tax Credit and the Non-Business Energy Property Tax Credit can provide substantial savings. Not only do these improvements help the planet, but they can also boost your tax refund. Let's go! 🌎💡
All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500. There are a few qualifications that must be met, such as income and retail price.
Btw... we happen to know a thing or two about financing electric vehicles. 😉 Check out our affordable rates and special features. It's also completely free to apply!
We hope this information has opened your mind up to some lesser known tax deductions and tax credits. Many Americans decide to put their tax refunds toward savings - a good choice! To boost savings even more, we recommend opening a High-Yield Savings Account1 or CD2 and implementing a solid savings plan.
If this helped, we welcome you to check out more related resources:
This article is intended to be a general resource only and is not intended to be nor does it constitute tax or legal advice. Any recommendations are based on opinion only.
1 Rates are subject to change after the account is opened. Fees may reduce earnings on the account.
2 A penalty may be imposed for early withdrawal. The amount of the penalty depends on the term of the account. For Accounts with a term to Maturity that is equal to or less than 6 months, the penalty imposed will equal 60 days' dividends. 12 months, will equal 90 days' dividends. Equal to or greater than 24 months, but less than 36 months, will equal 180 days’ dividends. Equal to or greater than 36 months, will equal 365 days’ dividends. Funds are federally insured by the National Credit Union Administration.
Investment advisory services offered through PFG Advisors, LLC, a SEC registered investment adviser. Securities offered through Osaic Wealth, Inc., member FINRA/SIPC. Insurance products offered through approved carriers. Copper State Credit Union, PFG Advisors, LLC, and Osaic Wealth, Inc. are separately owned entities and are not affiliated companies.
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