Things You Might Be Able to Write Off on Your Taxes
Tax season is in full swing. With recent reforms, most taxpayers are looking for write-offs to decrease the amount owed or enhance their refund. Did you know that the average taxpayer misses at least two deductions they could use? If you want to improve your bottom line, here are a few expenses you may want to include.
Moving Expenses
While Uncle Sam isn’t going to pay for your move to the tropics for pleasure, the IRS will help pay your moving expenses for work. If you move more than 50 miles from your home for your career, then you can use it as a write-off. Keep in mind that if your company handles the bill, you will need to account for the amount you were paid. To ensure there are no problems, you should keep records of your moving expenses in a binder so that you have evidence for tax purposes.
Health Expenses
Health expenses can be a significant write-off for some people. If you pay out of pocket for prescriptions, glasses, dental work, long term health care, insurance premiums or other medical-related expenses, you can write them off. Medical expenses are a tricky deduction. You can write off any amount over 7.5 percent of your adjusted gross income. However, the first $3,000 is not deductible. If you paid $9,000 above the threshold, then $6,000 in medical expenses could be used for your write-off. Most states also allow you to write off medical expenditures.
Charitable Contributions
Another often missed category of tax write-off is charitable contributions. Have you donated items to a local thrift store? Did you provide money or goods for disaster relief? Do you pay tithes or a percentage of your income to a church or other religious organization? All these expenditures can be applied to give you a significant deduction on your taxes. It’s always best to get a receipt from the place of your donation, and you must ensure that you keep accurate records. Cash donations should be made by check so that they can be easily traced. The check becomes your receipt. Uncle Sam closely monitors deductions that exceed $500 in cash, so you’ll need documentation if you’re subjected to an audit.
Whether you expect to owe money or get a refund, you can use deductions to enhance your bottom line. While these three items are commonly overlooked, there are many other write-offs that you can use to your advantage. It’s always best to have a tax professional handle your yearly returns so you can ensure that deductions due to you are added to your filing.
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What to Do If You Think You Can Get a Better Deal on Your Mortgage
Buying a house is among the most significant purchases that Americans will make in their lifetime. However, a mortgage is an essential component when seeking to buy a house.
You should know that selecting the best mortgage solution is vital since the length of the repayment period is substantial. Mortgages also charge interest, so you should remember that this is your money, and you should try to get the best deal.
Shop Among Multiple Lenders
When looking for the best mortgage rate or refinancing, it is essential to shop for different offers. Remember you don’t have to automatically go with the first rate you’re presented. Researching will make sure that you get the best deal on your mortgage. It would be best if you looked beyond your realtor, bank, or credit union. Talk to different lenders and explore the options offered online. Comprehensive research will position you to get the best deal. Once you narrow down your options, compare the mortgage rates. This is easy, as there are many options online for the best mortgage rates.
Don’t Worry
In financing, you are allowed to switch lenders before pre-approval if you feel you are not getting what you deserve. You can even select a mortgage provider that is different than your realtor. Worrying how to break it to your realtor is a common concern, so you aren’t alone.
Most people may be worried about how they would part ways with their realtor. If you get a better deal, you may bow out gracefully. Communication is critical rather than going behind the realtor’s back.
Manage Expectations
Whether you are purchasing a house as a seasoned buyer or a first-timer, you may feel overwhelmed by the amount of information you need to review. While researching your mortgage options, you will be given many “helpful” guides and legal disclosures. It will be beneficial if you manage your expectations so that you can select the best deal on your mortgage. It is not uncommon to seek advice and help when you feel overwhelmed.
When looking for a better deal on your mortgage, look at various contracts. Always seek expert advice when unsure to avoid making the wrong decision with your money. If you decide to change lenders, you should be transparent with your bank or realtor and explain that you have switched for better rates.
You might also like this article: Financial Mistakes You Should Avoid as a Family
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