You want to get the biggest refund you can, but you need to know all the deductions and credits you qualify for in order to get that. Here are five that a lot of people miss out on:
Many employers will pay you your normal pay when serving for jury duty, but you may be asked to hand over your jury duty payment right to them. If this happens, make sure you deduct your jury pay from your taxes. Jury duty is taxable income, so you don’t want to be taxed for money that goes right through your hands.
Many labor unions collect dues annually, and they’re usually just withdrawn from employees’ paychecks. These dues can be deducted during tax time.
Carpenters, electricians, and other professions require protective clothing to do the job. This clothing may need to be purchased by the worker, and if that’s the case, it can be deducted as an expense.
If you itemize deductions, gambling losses can be listed. However, your losses can’t surpass winnings. For example, if you won $3,000 but loss $5,000, you can only claim losses up to $3,000. Remember to keep all documentation.
Earned Income Tax Credit
The IRS says about 25% of taxpayers who qualify for the Earned Income Tax Credit don’t actually claim it. This credit was developed as a way to supplement wages for lower income workers. However, lower income has evolved to mean different things: you may qualify if you lose your job, take a pay cut or work fewer hours. The amount you get depends on your income, marital status and family size.
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