Being a work at home mom, a freelance worker or a business owner can have a wide range of tax benefits. Some of those are well known, but there a few deductions or credits that might surprise you.
Tax Deductions and Credits You Didn’t Know
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1. Most people know about the child care tax credit but did you know that day camps could qualify for this tax relief. As long as mom and dad are working while the children are in the day camp a portion of the costs can go towards the child care tax credit.
2. Mileage for trips to the doctor or dentist. Medical expenses are above about 7.5% of your income, but the mileage to appointments is deductible no matter what.
3. Mileage to volunteer work. You may not be able to get any tax credits or deductions for doing volunteer work but you can get credit for the mileage that gets you there.
4. Non-cash donations. Buying books for the Sunday school, giving a bag of clothes to Good Will or donating your crafts to the school auction. Be sure to get a receipt for the value of the donations.
5. State sales taxes (and income taxes) are often deductible on itemized federal income tax returns.
There are so many different ways to save money on your income taxes each year. The more you know about the deductions and credits the more of your money you will be able to keep in your own pocket.