With tax season fast approaching, it’s time to start gathering paperwork and considering financial events from 2016. Tax refunds can be a big benefit to consumers trying to build savings or eliminate debt. However, many miss out on full refunds because they forget or aren’t aware of all available tax credits or deductions.
Available Tax Credits & Deductions
When you file taxes this year, be sure to thoroughly research which tax breaks you qualify for. Here are the most commonly missed credits and deductions that will boost your refund and accelerate debt elimination.
- Saver’s Credit – This tax break is designed to encourage low and moderate-income couples to save for retirement. If you’ve made any contributions to a retirement fund this year, you probably qualify.
- Healthcare Coverage Credit – This credit is meant to help offset the cost of health insurance.
- Mortgage Interest Credit – For low-income earners hoping to buy a home, this credit is meant to make it easier. You must contact the IRS to receive a Mortgage Credit Certificate before buying a home or acquiring a mortgage to qualify.
- Lifetime Learning Credit – This credit is similar to the American Opportunity Credit. Both provide a tax break for anyone paying tuition or enrollment fees. The LLC is different in that the educational program does not need to be degree or certification seeking.
- Standard Mileage Deduction – You can deduct the cost of using your car for business purposes.
- Union/Club Expense Deduction – This deduction provides a tax break on union or membership dues for professional societies like the chamber of commerce.
- Student Loan Interest Deduction – Anyone currently repaying student loans can deduct payments made toward the interest of their loans.
- Disaster & Theft Losses – You may deduct uncompensated losses due to theft or damage to your home or car.
There are many more tax credit and deductions available that consumers can utilize to get more money back. Check the IRS website for a complete list and additional details on credit and deduction for individuals. For small business owners, don’t forget to also research business credits and deductions.