With spring just around the corner, that means spring cleaning, planning for summer vacations, and of course, tax season. Whether you are an individual, small business owner, or a CEO of a company, filing taxes can mean deductions are missed that will eat into your return. There are often deductions missed when filing taxes, but let this be the year when you get your biggest return yet. If you’re looking for a financial planner for guidance during this tax season, contact a financial consultant at KNR Consulting. Our financial services can help you ensure that your taxes are filed correctly and that you receive the return you deserve.
Whether this is old news or if you are new to this, charitable donations may be deductible on your tax return. There are several instances where this is possible, depending on what was donated. If you volunteer for a nonprofit organization, any expenses that you incur can be written off. Did you deliver meals on wheels and used your own car? If you keep records of your expenses, the cost of gas can increase your return. If you bought an item from a charity, you can also deduct these costs. But keep in mind that if the cost is more than $250, there needs to be a written acknowledgment from the charity.
If you, your spouse, or your dependants are taking college courses, the tuition fees, the cost of books and supplies can be deducted up to $4,000. You don’t need to be enrolled full time, either; if you only took one class, the expense can be added to your tax return. This deduction is possible through the American Opportunity Tax Credit for college expenses.
Retirement Saver’s Credit
Do you have an individual income of up to $29,500 or a married filing jointly income of $59,000? Have you been putting money into a 401(k) account or other retirement savings account? If you fulfill both of these requirements, you may qualify for a retirement saver’s credit. Individuals or couples can receive a tax credit of $1,000 or $2,000 if money was contributed to a qualifying retirement account. If you have contributed to an IRA, this money may also be a deduction from income.
This isn’t a reason to start gambling, but if luck wasn’t on your side during the previous year, it may benefit your tax return. If you have itemized your deductions, the losses you took gambling can be deducted. Keep in mind that the losses can’t surpass the winnings. If you won $1,000 and lost $2,000, the deducted can’t exceed the difference of $1,000. Also remember to keep documentation of wins or losses, including receipts and tickets.
Were you searching for a job last year? Costs including preparing and sending resumes, fees to employment agencies, or even travel expenses that were incurred can be deducted. Again, you must keep track of receipts and any pertinent documentation.
Tax season can be stressful, but if you have stayed organized throughout the year and have kept track of charitable donations and certain expenses, you may have a bigger return when taxes are filed. KNR Consulting’s financial planning services and financial advisors can help you file your taxes in order to receive an accurate return. If you have invested last year or saved for retirement, contact KNR Consulting to get the financial advice you need. The financial world, including planning for retirement, social security benefits, and even filing for taxes can be complicated and overwhelming. Don’t go through it alone. Contact our financial planners today.