DEDUCTIONS... CHA CHING!

Tax season stirs up a lot of questions, including questions about deductions. I always wonder if there are certain things I can deduct but am overlooking.

For instance, did you know if you’re volunteering for a charitable organization by baking cupcakes or creating something that has out-of-pocket cost, you can deduct the cost of the ingredients and/ or supplies used? Just be sure to keep the receipts in case you are audited.

Now, you’ve made your cupcakes and it’s time to attend the event, but your children can’t come as it’s an adult’s only event. You hire a babysitter for the evening. Did you know that is a tax write off? Yup, as long as you are attending an event where you are volunteering and not being paid, you can add babysitting as a charitable contribution on your return.

For all those teachers out there, you might want to read this part. I would say the majority of teachers pay for supplies out of their pocket and that adds up. But the good thing is, as a teacher you can deduct up to $250 for materials. While you might be spending more than that, it’s still nice to be able to deduct something on your taxes. This applies for K-12 Educators so if you fall into that category you can deduct that right from your income.

And if you’re a student this tax season, you are able to deduct the cost of tuition as well as the fees involved in your education. I remember when I was able to take advantage of these deductions while I was working on my master’s degree, it was a nice feeling and the amount of money I had coming back was even better. Plus, if you have student loans, you can deduct the student loan interest too! So, being a student isn’t all that bad.

Now, this one makes me laugh. If you enjoy gambling, you can deduct your gambling losses. There is a catch though, you cannot deduct more than the amount of income you made from gambling. So be careful of how much you lose as well as how much you make.

The amount of deductions that are offered simply amaze me. Many I never knew about and probably never claimed on my taxes.  This year I need to watch a little more closely. To see a full list of deductions for individuals be sure to check out the IRS webpage. 

I hope your tax return is good to you this year! 

^Alysha