It’s officially tax season in the US. I don’t know about you, but I’m already thinking about all the things I plan to put my return money toward this year, including some of these! But at the same time, I’m wishing I could just opt out of taxes altogether and have all the extra money year round. Anyone else?!
I recently read that the average tax return is nearly $3,000! That kind of blows my mind since my return never seems to get anywhere near that range, so I’ve been trying to figure out how to take advantage of any and all deductions I’m eligible for to increase my tax refund. I’m sure I can’t be the only one, so I’ve rounded up five deductions to help you increase your tax refund!
Are you in school or taking some non-degree seeking courses to expand your knowledge? You can deduct up to $4,000 in tuition-related expenses if you’re a student or up $2,000 per year for any skill-developing classes you take! And if you’re paying off student loans, that interest you’ve been paying is also able to be deducted (up to a certain amount)!
This is one of the biggest reasons I’m excited to become a homeowner this year! If you own a house, you’re able to deduct your mortgage interest and property taxes, which are pretty big expenses! Also, if you make energy-saving improvements to your house, you’re eligible to deduct up to 30% of the total cost of installation!
Cash donations are a more obvious tax write-off, but did you know you can also deduct items you donated, such as clothes and furniture? And while you can’t deduct anything for volunteering your time, you can deduct travel expenses for your commute to the volunteer location! While you’re starting to do your new year/spring cleaning, be sure to get receipts from the charities you donate to and save them for next year’s taxes too!
If you own your own business or work remotely, you’re able to deduct home office expenses, including a portion of your rent/mortgage and utilities. Additionally, if you’re a business owner, you can deduct subscriptions, office supplies, books, technology, travel, and any other expenses that help you run your business.
Parents – if you paid a daycare, babysitter, camp, or any other childcare expense for a child under 13, you’re eligible for a deduction of up to 35% of your care expenses up to $3,000 (1 child) or $6,000 (2+ children). I don’t have kids but I do know childcare is pretty pricey so this is a great one to take advantage of if you can.
I hope this info has been helpful for you in taking advantage of all of the tax deductions available to you! Please note that I’m not a tax expert by any means, so if you have questions specific to your case or are unsure if you’re eligible for a certain write off, I highly recommend reaching out to your accountant or consulting a tax expert!
Do you take advantage of these tax write-offs? What do you plan to put your return money toward this year?
May the odds be ever in your favor of a high tax return!