As a tax paying citizen of the country, you too like others, may be trying to find ways you can reduce your taxes by uncovering tax deductions. When filing your tax return in Kissimmee, your aim is to reduce your tax liability.
That will only happen if you know where to look. In order to help in your hunt to identify tax deductions, here is a list of deductions you should look for when you file your tax return in Kissimmee this year:
1. Deduct State Sales Taxes
Individuals have the option to subtract local or state income taxes as an itemized deduction. In the event you do not have any local or state income taxes to deduct, you can deduct state sales taxes then.
Individuals will get the option to deduct either actual paid sales taxes or using the standard sales tax deduction made available by the Internal Revenue Service (IRS). For instance, on past purchases of a vehicle, you can increase your standard sales tax deduction by actual paid sales taxes.
2. Deduct Charitable Contributions
This year, do something good such as donating to charity. You can donate to the Goodwill or any other charity of your choice. If you have donated to a charity this year, you will save money when you file your tax return in Kissimmee. In fact, you can deduct anything that counts as charitable from your taxes such as how many miles you drove your car.
3. Deduct Student Loan Interest
Have you taken out a student loan to pay for college? If you have, you can deduct the interest you paid on it from your taxes. Although you can deduct any personal interest you have paid, you cannot deduct interest you paid on your mortgage loan. When you file your tax return in Kissimmee, you can claim the student loan interest deduction as an adjustment to your income.
4. Deduct Paid State Taxes in the Year
Individuals who owed taxes last year may need to pay them this year when they file their tax return in Kissimmee. If you have to pay overdue taxes this year, you can claim them as itemized deductions.
5. Deduct Moving Costs
Did you move to another state or city within the state this year? If you have moved to a new place, you will be able to deduct moving expenses from your taxes. However, you are only allowed to claim moving expenses on your tax return if you changed your location due to a job switch or you opened a new business elsewhere. In order to deduct moving costs successfully, you must meet the following three requirements set by the IRS:
- You moved because you started a brand new job or you started a business
- You pass the distance test
- You pass the time test
Keep these points in mind when your file your tax return in Kissimmee.
If you do not comprehend the above deductions or think you will not be able to deduct them from your taxes correctly, you can always hire the services of an accountant to file your tax return in Kissimmee.
If you have additional questions with any of our tax accounting services please call us at 407-344-1012.