While freelancers and business owners may be quite familiar with tax credits, benefits and deductions– it is no guarantee that you are getting everything that could be owed to you. Also, these opportunities often apply to anyone filing taxes… even if they did not earn any professional income in a given year. Keep reading for our top seven most forgotten and overlooked tax credits, benefits and deductions!
#1: Income-related costs
No matter how you earn your living, if you make taxable income– you are eligible to claim certain costs incurred in pursuit of it. While self-employed taxpayers are familiar with the many ways to claim a tax credit, you should not overlook them if you work for an employer. Commuting costs, business lunches and qualified expenses are just some the more commonly claimed credits.
#2: Mandatory expenses
If your profession requires you to pay for certain privileges or qualifications, you may very well be able to claim all or a portion as an income tax credit. Examples of such expenses are union dues, licensing exam fees and professional certification payments.
#3: Interest paid on student loans
This one is easier to remember, as the national and provincial student finance authorities issue tax forms to anyone paying back student loans. To make sure you do not miss out on these deductions: always keep your current mailing address and contact information on record.
#4: Credits for parents
Parents are busy people! It is understandable why taxes are not at the front of your mind, but credits and benefits can mean more money to raise your family. Always file your taxes to qualify for annual benefits for dependent children and be sure to review eligible credits related to childcare expenses.
#5: Medical costs
Tax credits can be earned through your own disability, the disability of a dependent, injury or illness, dietary requirements and many other conditions. Your health should be your first priority, so make sure you file your income tax by the deadline every year. The burden of your medical costs can be reduced by keeping your information current and providing the required documents.
#6: Moving deductions
Have you moved this year? Did you hire movers, rent a truck or use your own vehicle to transport your belongings? You are likely eligible to claim income tax credits for a percentage of your expenses– businesses may also qualify!
#7: Homeowner credits
Owning a home means you have a lot of responsibility, but just like maintaining and up keeping the property: your finances should always be in order. This does not mean paying your mortgage in record time, but it does mean taking advantage of every credit and benefit available to you. There are government programs that reward first-time owners, as well as those renovating or upgrading their existing homes.
The seven tax credits, benefits and deductions above are just a few of the most commonly forgotten– contact or visit Liu & Associates today for a comprehensive review of your eligibility.