24 Apr Tax Planning: Commonly Overlooked Deductions
Deductions People Overlook When Tax Planning
Overlooking deductions when filing your taxes is the last thing you want to do. It means money out of your pocket one way or the other. That’s why it’s a good idea to review some of the deductions people commonly overlook when they’re tax planning. Remember, tax planning is different for everyone. Consulting with an expert is the best way to make sure your unique situation is properly considered when filing your taxes. Today in the Jeff Pickering, CPA blog, we’ll go over some of these deductions.
Casualty and Theft Losses
Although you never want a disaster to happen to your home, and you’d never want to be stolen from, you can write off your damages. This can help to lessen the financial burden a little. Whatever isn’t covered by insurance can be included in your deductions, unless your home or property is located in a federally-declared disaster area.
Student Loan Interest
Student loans are a pain, and the interest on your student loans is an even bigger pain. But that doesn’t mean you can’t deduct that interest on your taxes. In fact, even if your parents paid the interest on the loan, and even if you’re not a dependant, you can still include a certain amount in your deductions.
Although you probably don’t like thinking about the losses you’ve made on your investments this year, it’s worth taking a look at them for tax planning purposes. If your losses are greater than your gains, you can deduct a certain amount on your taxes. It’s not a great consolation, but it’s definitely better than nothing.
Although people don’t usually overlook the cash or check charitable donations they’ve made, it’s easy to forget donations of assets. For instance, donating a large number of clothes to Goodwill would be considered a charitable donation. You just have to make sure you get a donation receipt of the transaction so you can claim it as a deduction on your taxes. A big part of tax planning is saving all of your documents, so you don’t have to scramble for documentation and proof at the end of the year.
Consult with a Tax Planning Expert
Of course, the best way to do tax planning right is to consult with an expert. They can advise you on all the deductions you might be missing, so you get the most out of filing your taxes this year. Contact Jeff Pickering, CPA today for more information about tax planning and to schedule a consultation.