Congress is continually making changes to the tax code. Because of this, there are numerous tax deductions and credits that you may qualify for, although may not even know about them. If you think you are in a special tax situation, it may be a good time to get some financial advice St Charles IL.
Some Overlooked Tax Deductions and Credits
Most taxpayers are familiar with the common tax deductions and credits, such as mortgage interest and others. But, because the tax code is so big, there are numerous, less-well-known ones that you may be eligible for. Check these ones out:
- State Sales Tax. You have the choice between deducting the state income taxes or state and local sales taxes they paid. Choose whichever saves you the most money.
- Gambling Losses.Yes, you can deduct these. Just keep good records.
- Jury Pay. If you had to give this to your employer, you can write it off.
- Reinvested Dividends. Don’t forget to include reinvested dividends in your stock, bond, or mutual fund basis. That way you’ll avoid double taxation of the dividends.
Changes to Some Common Tax Items for 2021
Also, keep in mind that there have been a number of changes made to some common parameters for tax filing for 2020. These include changes or new information about the standard deduction, individual retirement accounts, the child tax credit, tax brackets, and COVID payments, among my others.
It can be difficult to keep up with all the tax changes each year. This your appears to be setting up as a big one, in terms of the number of changes that have already been made and are likely to be enacted. It may be a good idea to look for professional tax help for your personal and business tax filings for 2021.