
Photographer: Arvind Balaraman, freedigitalphotos.net
In honor of tax season, I wanted to mention itemizing deductions. Because I am not a financial adviser it is my desire not to advise, but to peak your interest to learn more about your finances and how they are affecting you and your household.
Not everyone qualifies for itemizing deductions on their taxes, but among those that do qualify there are tax deductions that are often missed.
What are itemized deductions?
Itemized deductions are certain expenses (such as student loan interest, child care costs, breast pump supplies, mortgage interest expenses, job relocation expenses, charitable donations, some out-of-pocket medical expenses, etc) predetermined by the Federal government that are tax deductible. Eligible individuals who choose to itemize their deductions usually do so because their expenses are more than the standard deduction amount. There are some limitations, so I encourage to dig a little deeper and learn more about this topic and speak with your financial adviser about your personal options.
The Key
- Keep track of your expenses; especially the ones that are allowed deductions. A full list can be viewed on the IRS website.
- Keep your receipts for these expenses.
- Know what deductions are available/relevant to you.
In my opinion, why itemize your deductions? If you have kept your receipts and your itemized deductions are greater than your standard deductions, you could potentially save you and your family thousands of dollars. It may even literally pay to itemize.
Additionally, there is an article on Kiplinger.com that liked, which discusses itemizing deductions by providing a brief over view of deductions available.
I am always interested in your thoughts about my posts so please feel free to comment.
-
Beginners Can Learn the Ropes From Investment Podcasts
Investing is the best way to prepare for your future, but most people don’t know where to start. If you’re tech-savvy ... -
Health Moment: Debunking the Myths of Laser Vision Correction
When it comes to any medical procedure, you’ll always find some myths intertwined with the truth, which makes it difficult to ... -
Looking for a job? Clean Up Your Social Media Profiles
Before you apply for that next job or even contact your friend about that upcoming informational interview, you need to take ...
-
Cognitive-behavioral therapy: An introduction
When it comes to mental health, a wide variety of treatment options are available. One of the most popular and well-researched ... -
Essential Wedding Planning Tips For Brides-To-Be With Kids
being a mom and a bride-to-be with kids is far from unusual - and while it can certainly throw up some unique challenges. -
Understanding Co-Occurring Disorders
Co-occurring disorders, also known as dual diagnosis, occur when a person has both a mental disorder and an addiction. While it ...
-
How to Find Affordable Home and Auto Insurance
Are you looking for affordable home and auto insurance? If you’re like many Americans, you may have had difficulty finding affordable ... -
What Is The Difference Between Bitcoin and Ethereum
You’ve sat on it for so long, but with Bitcoin at the forefront of our market, it’s unavoidable. With the digital ... -
Home Mortgages and How To Purchase Property
When it comes to purchasing property and home mortgages, more often than not, you’ll have to utilize a mortgage loan provider ...