Tax season is nearing an end, but there might still be some questions or things people don’t know if they are preparing to file their taxes before the deadline.
Here are five tax deductions that families commonly overlook, according to Concierge Capital Management.
1. Child and Dependent Care Credit
This credit applies to parents who have to pay for child or dependent care expenses in order to work or look for work. The credit can be up to 35% of the expenses paid for child care, up to a maximum of $3,000 for one child and $6,000 for two or more children.
2. Education expenses
Parents may be able to deduct expenses related to their children’s education, such as tuition fees, textbooks, and supplies. The American Opportunity Tax Credit and the Lifetime Learning Credit are two credits that can help families save money on education expenses.
3. Charitable donations
Families who make charitable donations throughout the year may be eligible for a tax deduction. This can include donations of cash, clothing, household items, and more. Keep track of receipts and donation records to maximize deductions.
4. Medical and dental expenses
Families may be able to deduct certain medical and dental expenses, such as doctor’s visits, prescription medication, and medical equipment. In order to claim this deduction, the expenses must exceed 7.5% of the family’s adjusted gross income.
5. Job-related moving expenses
If a family has to move due to a change in employment, they may be able to deduct certain moving expenses. This can include expenses related to packing and transporting household items, as well as travel expenses for the family. It’s important to consult with a tax professional or use tax preparation software to ensure that you are claiming all eligible deductions and credits.
To find out more about the most overlooked deductions for small businesses and retirees, please visit conciergecap.com.