Lifestyle
The 5 Most Overlooked Tax Deductions
Tax season can be very stressful, however, you do not have to let it stress you out. Since most people do not do their own taxes, they do not fully understand how easily the process can be. Unfortunately, if you do not educate yourself about taxes, then you can be overwhelmed with the requirements. Filing your taxes online can be very easy. With a few things in mind, you will be sure to complete them and get what you’re owed: 1. State sales tax State sales taxes are a definite write off on your taxes. A lot of people forget about sales tax being a write-off. If people don’t remember to write off their sales tax, then they will not get the largest return possible. Some states don’t even have an income tax. This is one of the most forgotten tax deductions. 2. Reinvested dividends Reinvested dividends can save you a lot of money. Unfortunately, most taxpayers do not know that reinvested dividends will save them money. Mutual funds are a commonplace of the taxpayer’s dollar. Since so many investors take advantage of having mutual funds dividends reinvested automatically, their “tax basis” is raised. When a tax basis is raised, you pay lower taxes on your capital gains.
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