Lifestyle
The 5 Most Overlooked Tax Deductions
Tax season can often bring stress, but it doesn’t have to be overwhelming. While many people opt not to do their own taxes, largely due to a lack of understanding of the process, educating yourself can simplify things significantly. The advent of leading tax software such as QuickBooks, TurboTax, and H&R Block has made online tax filing much more accessible. By familiarizing yourself with these tools and keeping a few key tips in mind, you can efficiently complete your taxes and ensure you receive any dues owed to you. 1. State sales tax State sales taxes are a definite write off on your taxes. A lot of people forget about sales tax being a write-off. If people don’t remember to write off their sales tax, then they will not get the largest return possible. Some states don’t even have an income tax. This is one of the most forgotten tax deductions. 2. Reinvested dividends Reinvested dividends can save you a lot of money. Unfortunately, most taxpayers do not know that reinvested dividends will save them money. Mutual funds are a commonplace of the taxpayer’s dollar. Since so many investors take advantage of having mutual funds dividends reinvested automatically, their “tax basis” is raised.
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