Tax season is upon us. The tax filing deadline will be here before we know it. People all over the country are gathering their tax records, organizing them, and preparing to either drop it off at a tax professional or to file taxes alone. Some are figuring out deductions and things they can rightfully claim to lower their tax expectations. This process can be complex and confusing. However, there are many things you may be able to deduct that you are not aware of.
Some professions require a lot of driving. You may be required to drive your own vehicle for these miles also. If you are driving during work hours with a personal vehicle, you may be able to deduct those miles. You also may be able to deduct gas off of a company vehicle. If you were required to purchase a company vehicle without reimbursement, you can also deduct the monthly payments or the price of the vehicle.
Work upkeep expenses
There are some professions that also require specific clothing or shoes. The purchase of these items can also be deducted, as they are a necessity for work. If you have to purchase a work uniform, for example, on your own dime, you can include this in your taxable deductions. It does not matter where you purchase these clothing items from either. You can help out the local charity by purchasing used from Red Cross donations and still deduct the cost of the clothing.
Non profit contributions
The U.S. government also encourages its citizens to donate. They do this by allowing you to deduct up to a certain amount of your clothes donations or other item donations. Tax deductible donations of clothing and household items collected by GreenDrop on behalf of the Military Order of the Purple Heart, the National Federation of the Blind and the Society of St. Vincent de Paul of Philadelphia, are sold by the charities to thrift stores such as second Avenue and Village Thrift. The tax deductible Red Cross clothing pickup that you provide also helps those in need.
To receive tax deductions on charitable donations, simply request a tax form when scheduling your Red Cross clothing pickup. If you donate clothing regularly or schedule frequent Red Cross pickups, you will want to ensure that you keep all of your tax deduction forms organized and easily reachable for when tax time comes.
If you choose to further your education, you may also be able to deduct some of the costs. You also may receive an annual credit for the entire time that you are in school. There are specifications, but most programs will qualify. You can also deduct the cost of books, tuition, and other school related costs. If you are supporting a child full time in school, you may also be able to claim some deductions.
Non profit employment
Employees who choose to work in the non profit sector may also receive additional benefits in the form of additional tax deductions. Red Cross clothing pickup centers, for example, may receive lower tax brackets or the ability to deduct higher charitable contributions. An annual value of $666.1 billion is contributed to the US economy by non profits. Without the existence of charitable programs like Red Cross clothing pickup centers, the government would be responsible for the people it helps.
It is likely that you pay some type of taxes all year long. You may pay interest taxes on your mortgage or student loans. You may also pay taxes on a new vehicle or individual purchases in your home state. In many cases, these taxes can also be deducted, because you have already paid them. You can usually find this information on your banking and loan documents.
In 2015, charity proceeds from the sale of donated goods to the thrift stores exceeded $2.5 million, supporting charitable programs locally and nationwide. These Red Cross clothing pickup and donation centers are so important that the government will provide tax deductions on contributions. Tax filers may also receive additional tax benefits they were never aware of.