Tax season is right around the corner, and it’s natural to want to avoid overpaying taxes by including deductions. Here are three unexpected and often overlooked deductions you can add to your tax return so you can keep more money in your pocket.
- Out-of-pocket charitable contributions. First, we all know that you can deduct big charitable gifts you made during the year by check or payroll deduction. However, the little things add up, too. You can write up out-of-pocket costs that you encounter while doing good deeds, such as ingredients for casseroles or the cost of stamps you buy for your school’s fundraiser.
- State Sales Tax. This deduction is most important if you live in a state that does not impose a state income tax. You can choose between deducting the state income taxes or state and local sales taxes you paid, whichever saves you the most money. In some cases, even filers who pay state income tax can still benefit from the sales tax choice.
- Social Security Taxes. Finally, while this does not work for employees, if you are self-employed or a business owner and pay the full 15.3% Social Security tax yourself, you can write off half of what you pay. You also do not have to itemize to take advantage of this deduction.
With tax season right around the corner, it’s natural to start looking for ways to save money on your taxes. There are many deductions people neglect to take, and here are three of the most common. If you are unsure of what types of deductions you can make as a business, you can contact Aspen Commercial Lending and work with one of their business experts to ensure you are taking advantage of all deductions possible for your company.