As the man on the $100 bill once said, there are only two things certain in life – death and taxes. But just because you have to pay taxes, doesn’t mean you have to leave a tip! That’s why were letting you in on the top tax deductions that people often don’t know they can claim, so you can lower your tax bill… and your stress levels!
Theft and disaster losses
Given the crazy weather that’s been going on recently in the US, it’s quite possible that more than a few of you may be entitled to this. Although were sure you’d prefer not to be eligible, the fact is if your home has been damaged by a natural disaster, you could be entitled to claim back the cost of the damages on your tax return. Plus, if y you live in a county that’s considered a Federal disaster area, then you’re automatically entitled to claim this tax deduction.
If you’ve had items stolen from your home which you have not been reimbursed for by your insurance company, you can also claim this on your tax refund. If you have been reimbursed for your stolen items, but not to the full value of the item, you can claim the difference on your tax return.
Taking care of a parent
If you are responsible for taking care of a parent, you could be entitled to claim up to a total of $3000 in annual expenses. The deduction is based on your annual income and your parent must have a physical or mental disability which renders them unable to take care of themselves and requires them to spend at least 8 hours per day in your place of residence.
Energy efficient home improvement
If you have upgraded your home to make it more energy efficient, then you could be entitled to claim the Non – Business Energy Property Credit. The credit let’s you claim back up to 10% of the cost of the upgrades up to the value of $500. To claim the credit, you must have the manufacturer’s credit certification statement. You may also be able to claim back up to 30% of the cost of putting an alternative energy source, such as solar panels or wind turbines, in your house. You can claim this credit, the Residential Energy Efficient Property Credit, up to 2016 and there is no limit on the tax credit.
Earned Income Tax Credit
The Earned Income Tax credit is a credit given to US workers with low to medium income. The EITC helps people who qualify to reduce their income tax liability which in some cases can even lad to an income tax refund. It’s estimated that up to 25% of those who are eligible for the income do not claim it due to the fact that some low to medium income families and individuals are not required to file a tax return with the IRS, yet this is the primary way to know if you are eligible for the EITC.
Health insurance premiums for the self employed
This one is simple – practically all self employed people are entitled to deduct all dental and medical expenses which they paid themselves during the previous tax year.
If you have purchased a home, refinanced your loan over the past number of years or paid points on your mortgage or loan, you could be entitled to reclaim some of this on your tax return. To claim the credit you must claim a certain percentage of the total cost of your loan each year for the duration of your loan. It might sound like it’s more hassle than it’s worth but the total really adds up. In addition to that, if you pay off your loan early, you’re entitled to claim back the full remaining balance on your loan.
State sales tax deduction
In states which have high state sales tax, or no income tax at all, tax payers may be eligible for a tax deduction by itemising their sales tax deduction. Itemising sales taxes paid on items in a certain order, as opposed to basing the deduction on your income, will enable you to claim the biggest refund possible.
So, how come more people don’t claim these deductions? Well the simple fact is that many people don’t know they exist or don’t want to spend hours reading the huge income tax code to find out what deductions they’re entitled to.
Luckily, we can help you claim all the deductions you’re entitled to. We've been getting peoples US tax refunds for 17 years, so at this stage, we know the US tax code like the back of our hand. So, why waste time sifting through the US tax code when we have the whole thing memorised and can do all the hard work for you?
To get started, all you need to do is use our US tax calculator to see how much you could be due. Then, once you've done that, you can fill out a US tax pack online and send it to us so we can start applying for your tax refund and getting you all the deductions you’re entitled to. The sooner you apply, the sooner you’ll get your refund!