Top 5 Tax Breaks You Need to Know Before Filing
Bonjour Rich Person,
You know what’s SO crazy. We have the same uncle!!! Uncle Sam! TBH — he’s not my fav. He’s always like, rolling up around April & taking some of my money which seems…uncalled for. No wonder my mom doesn’t talk to him anymore… So, in a protest against our shared uncle, here are 5 of my favorite tax breaks so that you can keep more of your money. Oh, and in case you missed it, watch my video on how Kim K puts her foot down with Uncle Sam too.
Top 5 Tax Breaks You Need to Know Before Filing Your Taxes
#1 Charitable Donations:
Quite possibly the easiest break there is! Keep tabs on all of your charitable donations in a given tax year and make sure you report them. The more donations you make, the bigger refund you’ll get.
#2 Student Loan Interest:
Paying off student loan debt has always been a widely known tax break, but what is less known is a recent exception that the IRS is now allowing: if someone else is paying off your loan for you, you could still be eligible to deduct it yourself. Basically, the IRS is treating it as though this person gave you the money, therefore you paid the debt yourself. Definitely look into this one if you have student loan debt.
#3 Child and Dependent Care:
This one gives you a tax credit, which is even better than a deduction. If you report your child and dependent care expenses, it quite literally reduces your tax bill.
#4 Refinancing a Mortgage:
This one is small but can add up! When you refinance a mortgage, it acts as a points system. Basically, you deduct points over the life of the new loan (ex: if your loan is a 30-year plan, you can deduct 1/30th for each $1,000 you paid)
#5 Jury Duty:
Were you a culprit last year? Your employer should still pay you your salary during jury duty (if they’re doing the right thing), but an added bonus is if you ask for jury fees to be turned over to your company. If you give this money to your employer, you can deduct the amount so you aren’t taxed on it.
That's it! Need more help filing taxes? My FREE TAX QUIZ will help you figure out if you can do them on your own or if you need to hire someone. Don't worry — I give you resources on who to hire too!