many Americans are in the final stages of getting their annual tax filings
together and want to make sure they're taking full advantage of the benefits
being made available to them. Fortunately, there are many tax deductions
consumers can claim no matter how much money they make.
Perhaps chief among these
is the amount they pay for medical or dental expenses they might have faced
over the course of the past year, according to a report from CNBC. For example,
unreimbursed medical expenses that exceed 10 percent of adjusted gross income
can be claimed as a deduction, and that threshold drops to 7.5 percent for
those over the age of 65. In addition to the costs they might have faced for
receiving the medical or dental treatment they received, this deduction can
also be used to cover equipment expenses, medical supplies, and devices they
might need to maintain their health.
similar lines, those who have health saving accounts can write off
contributions up to $3,250 for individuals and $6,450 for families, which will
lower their taxable income, the report said. When paying for qualified health
expenses, not only are contributions tax-free, but so too are earnings on the
account, as well as withdrawals. Further, health insurance premium deductions
can also be obtained when Americans are self-employed.
Consumers who work for themselves may also be able to deduct certain business
expenses they run into over the course of the year, the report said. They may
also be able to claim the home office deduction, but should be careful about
doing so because the Internal Revenue Service has many strict rules about how
this is made available, and claiming it can prompt an audit in many cases. In
general, the maximum deduction for having a home office is $1,500 per year,
based on $5 for every square foot of space up to a maximum of 300 feet.
event, those hoping to maximize their refunds might benefit from working with a
tax professional on their returns, because these workers are likely to be
well-versed in all the various breaks that will be available for each client.
For a more
in-depth look at Liberty Tax Service, visit the Give Me
Liberty! Magazine. Follow Liberty Tax on Facebook and on Twitter or contact
Liberty Tax directly at 1-877-at-Liberty.