Are you leaving money on the table with your taxes?

Every year, thousands of dollars worth of deductions are missed on tax filings, simply because the filer didn’t know they existed or that they qualified for them. But knowing what you are entitled to could significantly reduce a tax bill.

That’s why, to save you money this tax season, we’ve listed commonly overlooked tax write-offs that could save you money.

1. State Sales Tax

Although Florida residents don’t pay state income tax, some residents may still be eligible for state and local sales tax deductions on their federal return. However, this is only possible if the filing is itemized. Although this process can be tedious, it could result in getting a significant chunk of money back.

This is especially true for anyone that made large purchases throughout the year such as a car or home renovation. Just be sure all the receipts and invoices from the year, are documented and tallied for accuracy before filing for it.

2. Medical Expenses

Medical expenses are able to be deducted if they exceed a certain percentage of adjusted gross income (AGI). These expenses include things like prescriptions, certain medical equipment, doctor visits, and even mileage to get to medical appointments.

However, for these claims to go through, detailed records must be provided and you must first determine if you fall within the AGI threshold set out by the IRS.

3. Charitable Contributions

Another commonly overlooked tax break that people forget to claim is charitable donations. Not only does this itemized deduction account for cash donations, but it also covers things such as clothing, food, or other tangible items, so long as there are detailed records of each.

4. Education-Related Credits and Deductions

If you or your dependant paid for higher education, then you may qualify for education rebates such as the American Opportunity or the Lifetime Learning Credit.

And, for recent graduates dealing with student loan debt, you too may also be eligible for a deduction of up to $2,500 on your return. This deduction is available to anyone who has made payments on a student loan throughout the year without it having to be itemized. This means, it has the potential to reduce taxable income directly, in turn, helping to immediately lower a tax bill.

5. Home Office Deductions

Anyone who is self-employed, or working freelance or contracting-style gigs, has the ability to claim a portion of their home office expenses on their tax return.

This deduction is only available to those who have a dedicated area in their home that is used for the business, such as an office or workspace. For those who do, a portion of expenses such as utilities, internet, rent, mortgage interest, or home insurance could qualify.

6. Property Taxes

Many Florida homeowners fail to realize that their property tax is eligible for a deduction despite Florida not charging income tax. This claim is only eligible on a federal return, and so long as it falls within the federal limits that have been set out on state and local tax deductions.

7. Energy-Efficient Credits

For anyone who has completed energy-efficient upgrades to their home, there may be tax credits available. Certain items like solar panels, energy-efficient windows and doors, or upgraded HVAC systems could qualify for the energy-efficient tax credit.

Before filing for this, just be sure to cross-reference your upgrade with the list provided by the federal government to ensure it qualifies. And if it does, you could benefit from a reduced tax bill, dollar for dollar.

If you’re unsure if you qualify for any of the items listed above, give us a call at 407-328-5001. Here at A.P. Accounting & Tax Services, we understand just how quickly tax deductions and credits add up, which is why we’ll work with you to find every opportunity to lower your tax bill.

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