Tags: tax | deductions | sales | charitable

Keep in Mind Tax Deductions for Sales Taxes, Charitable Expenses

By    |   Friday, 23 January 2015 01:08 PM

Don't look now, but tax season is coming upon us. Kiplinger has assembled a list of the most overlooked tax deductions. That list includes:
  • State sales taxes. In states that have no income tax, such as Florida and Texas, you can deduct the sales taxes you paid instead. And even if you live in a state that does have an income tax, you might save more by deducting your sales tax payments rather than your state income tax payments.
  • Out-of-pocket charitable deductions. You're probably already aware that you can deduct the amount of cash gifts you give to charity. But out-of-pocket expenses for your charitable activity also are fair game. "For example, ingredients for casseroles you prepare for a non-profit organization's soup kitchen and stamps you buy for a school's fund-raising mailing count as charitable contributions," writes Kiplinger's Kevin McCormally.
  • Job hunting expenses. If you lost your job, at least you can make up for a little of your lost income through this deduction.
Bankrate.com also created a list of often-ignored tax savings opportunities.
  • Medical costs. You can deduct medical expenses in excess of 10 percent of your adjusted gross income. And that includes travel expenses for medical treatment, eyeglasses and prescription drugs. If you're self-employed, you can deduct 100 percent of your health insurance premiums.
  • Retirement plans. You have until April 15 to make a contribution to your IRA that will be counted on your 2014 tax return. The limit is $5,500, or $6,500 if you're at least 50.

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Don't look now, but tax season is coming upon us. Kiplinger has assembled a list of the most overlooked tax deductions.
tax, deductions, sales, charitable
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2015-08-23
Friday, 23 January 2015 01:08 PM
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