How much money will you leave on the table in 2016?
When it comes to tax write offs, one thing to pay attention to is writing off your sales tax. You can figure this out just by logging on to the IRS website. The calculations are already in place for the Black Hills area.
A lot of people do not realize they can do this and for someone earning $50,000 to $60,000 a year with two dependants, that could mean $924.00.
Another item most people miss is out of pocket charitable donations. Cash you give to church or to fundraising events can be deducted up to $250 dollars without having to prove the deduction.
You can also write off 14 cents per mile in diving to a charitable event. However, check with an accountant first to make sure you meet the requirements.
Kahler financial group
"you do need to check, preferably with an accountant to see if you have enough to go over two percent of the adjusted gross income." Rick Kahler with Kahler Financial Group said, "Sometimes the deduction has to be large enough or sometimes if you do not itemize you can't take it. There are many deductions that surprisingly you can take even though you don't itemize. So it's good to check that out."
Kahler says the end of the year is not a hard deadline for deductions or write offs and says you have time to add up your claims until you file your taxes. However, any gifts to charity need to be done in this tax year.
If sending a check, as long as the check is signed and dated by the end of the year, it can be claimed even if it arrives to the charity or is deposited later.
"A lot of people leave money on the tabel at the end of the year." Kahler said, "Because they dont keep track of things or even know about deductions."
One deduction you may not know is for job hunting. You can deduct finances that go into finding a job. It's two percent over your adjusted gross income but if you didn't have much income or none at all, that can be a lot of money.
Moving expenses for a first job can also be deducted. Medicare is also deductable if you are self employed. For more information about write off and deductions, visit the IRS website ( www.irs.gov ) or contact an accountant.