In another article, we had suggested claiming
itemized tax deductions over standard tax deductions as they will save you
more tax. However, while there are some itemized deductions that are common
knowledge for the average taxpayer, there are a few that are not so commonly
known, but are great tax savers nevertheless.
Adam Ginsberg, one of the foremost mentors
and wealth-building coaches, lists a few here that you could be overlooking but
could help you save some serious dollars in tax for the coming year.
Lesser-known
Itemized Deduction #1
Deductions
for Self-employed Individuals
If you are a proud self-employed American
who is trying to squeeze a modest living in these harsh times, but are afraid
that the taxman will take away a huge chunk of your hard-earned money, fear
not, for you can save your taxes by claiming business expense deductions on
your home-office. However, to be able to do that you must ensure that you have
earmarked a dedicated space for your “office” in your home. For example, if you
are using 200 square feet of space in your 4000 square feet house, then you can
claim deductions on 5% of your expenses like electricity that you consume in
your home. Then there are medical
and dental-care expenses that are fully tax-deductible if your income is
more than the premiums that you pay for your health insurance. And if you are
frequently travelling for your business, you can even claim all the baggage
fees that you incur as deductions too. To know more about the deductions
available for the self-employed, you could see a tax accountant and save a few
dollars.
Lesser-known
Itemized Deduction #2
Deductions
for Charitable Contributions
While it is common knowledge that charitable
contributions are deductible under the US tax laws, what is lesser known is
that some deductions are available for volunteer work as well. For example, if
you are travelling for volunteer work, you could claim deductions on the miles
that you travel, or if you are incurring expenses from your own pocket on
things like raw material for cooking meals for the homeless, you could claim
those too as deductions. While it may seem uncharitable to some, you could look
at it as having more money to donate So, go ahead and claim those deductions.
Lesser-known
Itemized Deduction #3
Job-hunting
Deductions
We are living in hard times and jobs are
not as stable as they used to be. People are forced to look for new jobs due to
layoffs and it can be very taxing—physically, mentally and emotionally, but not
financially. Not as much anyway. You can claim
all expenses incurred on hunting for a new job, like consultant fees,
resume writing costs, local and overnight travel for interviews, etc. as tax
deductions. The only condition is that your new job should be in the same line
of work as the old one.
There are many more itemized deductions
available that we very often overlook to claim for. Adam Ginsberg suggests
taking the advice of a qualified tax accountant to save you a lot of tax
dollars and help you boost up your savings. After all, a dollar saved is a
dollar earned.
Adam Ginsberg is helping people to becomefinancially independent with his resources like eBay templates, eBay
software and eBay tools. If you want to know more about his resources you can
visit Secrets
of An Auction Millionaire, Success with Adam and Adam’s main website. You can also see testimonials
of his satisfied customers.
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