Tax Deductions That You Might Have Missed

  • April 4, 2023
Check Cashing USA

Check Cashing USA understands that tax season is an anxious time for everyone, no matter how financially savvy they are. The tax code grows increasingly complex with each new year, and keeping up with all the changes can be challenging. However, take the time to properly research your options and make sure that you take advantage of any relevant deductions. You may find yourself in the surprising position of owing no taxes at all or even getting a refund. 

A great way to start is to read up on which deductions are available and then do an audit of your past year's return, checking off the ones you qualify for that you omitted before. Doing this extra bit of due diligence could spell out real relief at the end of April with a bigger tax refund check to cash.

Quit Smoking?

Quitting nicotine can be a struggle, but there are incentives to help nudge smokers along the path to success. Participating in a smoking cessation program is one way to take practical steps toward a healthier lifestyle, and it can also help save money. 

Signing up for a participating program might be eligible for a deduction as a medical expense come tax season. Even prescription drugs to help manage nicotine withdrawal can qualify for the same tax deduction. Get informed on your health plan's resources, and pursue ways to get the most bang for your buck on the journey toward quitting nicotine.

Student Loan Interest

Parents with dependents who are both bearing the burden of student debts can take comfort in the fact that they are able to deduct the interest they've paid throughout the year on their child's loans. This is a huge help, as partaking in higher education is no small financial commitment. 

Even if a parent is only dealing with their own loan payments, they should receive Form 1098-E from their lender to indicate how much interest they paid, so they may also take advantage of these deductions if qualifying. However, you should note that there is a $2,500 cap each year on deductible interest expenses. Therefore, those who made considerable sums from furthering their education might not even qualify for this deduction.

Home Improvements That Save Energy

Making your home more energy-efficient is an easy and great way to save. Not only will you help protect the planet by doing your part to reduce energy consumption, but you could also qualify for a considerable tax credit – the Energy Efficient Home Improvement Credit – when you install certain energy-efficient improvements, such as solar doors and windows. 

Currently, this credit is up to 30% of the price of the improvement, with no limit on how much you can get. So if you’re considering improvements for your home that will improve its energy efficiency, it’s worth taking advantage of this credit and helping protect the environment while greasing up your wallet at the same time.

Charitable Donations

When donating to a charity, you might not be aware of the other actions that can help you financially. For example, in addition to contributing cash or checks, expenses incurred for charitable use are also eligible for tax deductions. 

Whether it’s your vehicle used for a charitable event or ingredients purchased for a bake sale, every little bit counts when trying to reduce your taxable income; even donating food products is deductible if presented to qualifying charities in need. It’s important everyone takes advantage of these saving opportunities when possible, as this helps both your financial situation and those in greater need.

Gambling Losses

It may not be widely known, but there is a tax deduction people can take advantage of if they find themselves in the unfortunate situation of having gambling losses. However, in order to get the full benefit from this deduction, it's important to know that it only applies if one itemizes deductions instead of taking the standard deductions offered by the IRS.

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Furthermore, it is limited to the amount reported as taxable income in winnings; even so, some of the many other forms of gambling are also included when calculating one’s withholdings, such as bingo and lottery tickets. Considering all these aspects, this bonus reduction in taxable income has well-rounded coverage and could prove useful to many.

Jury Duty Pay

Being called for jury duty can cause financial hardship if your employer does not pay you your full wages during the period of jury service. However, many employers pay their employees' full wages when they are called for jury duty, and the employee may be required to return the compensation money they receive from the court to their employer. 

It is important always to follow regulations and laws and never take advantage of a situation or try to find a loophole around rules. The best way is to comply with all employment contract laws and related agreements. Though you have to report the juror pay as income, you can claim a tax deduction on any court fees you have returned to your employer during jury duty.

Check Cashing USA: Tax Refund Checks Cashed

Have you been eagerly awaiting your government tax refund? If so, then Check Cashing USA is the place to get it cashed quickly and securely. We cash all local, state, and federal refund checks for a low fee. You can also bring in your non-government tax refund check from services like Jackson Hewitt and H&R Block — no matter the size, we have you covered. So have peace of mind knowing Check Cashing USA is here to make cashing your tax refunds quick and easy.

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