The Different Tax Breaks You Can Actually Enjoy
They say that there are only three permanent things in the world: death, change, and tax. A country will never be able to survive and generate income if it doesn’t tax people. The problem is taxes mean a reduction of income and an increase of an expense. It’s not impossible to spend hundreds to thousands of dollars in taxes every year, an amount you could have spent for other things such as additional payment mortgage or pocket money for a holiday travel.
But here’s the good news: you can enjoy certain tax breaks. They are either deductions or tax credits that decrease how much you give to the government. The only thing you have to do is to ensure you don’t forget to include them in your tax preparations:
Charitable Contributions: Indeed, generosity rewards you a hundredfold—literally. Out-of-pocket charitable contributions, no matter how small they are, can be deducted to your tax every year. You just need to prepare a receipt if your contribution amounts to more than $200 as well as recognition from the charitable institution.
Student Loan Interests: To be asked to pay your student debts with interests can definitely be such a huge burden, and a tax reduction is surely welcomed. The good thing is you can actually deduct your interest repayments up to $2,500, provided that the debt was paid by your parents. The student loan repayments from parents are considered by the IRS as a gift to the child who is the one responsible for it. Nevertheless, to enjoy this deduction, you have to be a non-dependent.
Job Search Expenses: If you’re still looking for a job, then you better keep tabs on how much you’re already spending for it. This means take note of the amount you shell out for food, agency fees, and even transportation costs. You can actually reduce your tax with them, provided that it exceeds your adjusted gross income to 2 percent.
Energy Savings Credit: A tax credit is one of the best reasons why you should go green, especially for your home. You can enjoy as much as 30 percent of your total green home improvement costs (but the amount should never exceed to $1,500).
Keep Yourself Focused
A lot of people don’t get to enjoy tax breaks for one good reason: they simply forget about them. When you’re preparing your taxes, therefore, you need to be extremely focused and organized.
Subliminal messages or affirmations can actually be helpful. At least a few days or weeks before the tax filing application deadline, you already condition yourself using the following subliminal messages:
I am focused. My focus can help me save a lot of money.
I am determined to save this year.
I will enjoy huge tax breaks today.
You can also use affirmations to maintain a clearer head, especially when you’re already itemizing your deductions. You don’t want to commit mistakes or omit certain things. Messages like “I am calm and collected” can be helpful so as not to forget anything.