Uncover Savings: Top 10 Tax Deductions You May Be Missing #Safe Harbour Accounting Jacksonville

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Large Purchases, Tax Holidays, Adoption Credits & More…

Navigating the complex world of tax deductions can be challenging, but understanding the tax benefits specific to your state can lead to substantial savings. You might be missing out on valuable tax deductions that could help you keep more of your hard-earned money. In this article, we’ll highlight the top 10 tax deductions you could be overlooking…

● Homestead Exemption: Florida and other states offer a Homestead Exemption to eligible homeowners, reducing property taxes on their primary residence. This exemption can lead to significant savings by lowering the assessed value of your home for tax purposes.

● Sales Tax on Large Purchases: If you’ve made significant purchases such as a car or boat, you may be eligible to deduct the sales tax paid on these items from your Federal income tax return.

● Sales Tax Holidays: Many states have these events and in Florida, there are a few.

Disaster Preparedness Sales Tax Holiday: May 27 – June 9 and August 26 – September 8, 2023
Freedom Summer Sales Tax Holiday: May 29 – September 4, 2023
Back-to-School Sales Tax Holiday: July 24 – August 6, 2023 and January 1 – 14, 2024
Tool Time: September 2 – 8, 2023
Energy Star Appliances: July 1, 2023 – June 30, 2024
Home Hardening: July 1, 2022 – June 30, 2024

● Medical and Dental Expenses: You may qualify for federal tax deductions on medical and dental expenses that exceed a certain percentage of their adjusted gross income. These deductions can include healthcare premiums, prescriptions, and medical treatments.

● Charitable Donations: Donations to qualified charitable organizations are deductible on federal tax returns. Make sure to keep records of your contributions to maximize this deduction. Also keep track of any mileage you drove for charity. The IRS allows an amount per mile driven for charity

● Home Office Deduction: If you use a portion of your home exclusively for business purposes, you may be eligible for a home office deduction. This deduction can help offset expenses like utilities and mortgage interest.

● Disaster Loss Deduction: Florida’s vulnerability to natural disasters means residents may qualify for a deduction on their federal tax return if they’ve suffered property damage due to events like hurricanes or floods.

● Child and Dependent Care Credit: The total expenses that you may use to calculate the credit may not be more than $3,000 (for one qualifying individual) or $6,000 (for two or more qualifying individuals). Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual’s well-being and protection.

● Adoption Credit: If you’re considering adopting a child, that’s wonderful. There is a tax credit available up to $15,950 in 2023 for eligible adoption expenses for each eligible child.

● Military Moving Expenses: While most of us are not able to deduct moving expenses since 2018, the good men and women of the military still can. This includes a move from your home to your first post of active duty, a move from one permanent post of duty to another, and a move from your last post of duty to your home or to a nearer point in the United States. A move from the last post of duty must occur within 1 year of ending your active duty or within the period allowed under the Joint Travel Regulations. The expenses of a member’s spouse or dependent due to a permanent change of station may also be eligible.

You have access to unique tax deductions that can significantly impact your financial well-being. By understanding and taking advantage of these deductions, you can reduce your tax burden and keep more of your money in your pocket.

However, tax laws can be intricate, so it’s recommended to consult with a tax professional or CPA like Safe Harbour Tax & Accounting Services to ensure you’re maximizing your savings while complying with all regulations. Don’t miss out on the opportunity to optimize your tax strategy and secure a brighter financial future. Contact me at mark@safeharbouraccounting.com to schedule a time to talk!

**This article is presented for ideas only and is not specific tax advice. You should always speak to your tax preparer or a CPA to handle your specific situation and questions.