Tax time is here again. Are you prepared? We’ve created a top 5 list of things Millennials should know before filing taxes. You’re totally going to want to read this one. It’s full of commonly overlooked deductions that could potentially save you hundreds. Do we have your attention? Of course! So, before you head out to your certified tax preparer, make sure to read this entire article.
Tax prep fee deduction is a thing.
Number one on our list of things Millennials should know before filing taxes, is that tax prep fees are deductible. Say what? Yes, you read that correctly. If you fill out form Schedule A to report itemized deductions, you can derive the cost of tax preparation. The deduction even covers convenience fees if you paid taxes and used a credit or debit card to do so. One caveat to this rule, this deduction doesn’t apply if you used free online tax prep software. However, if you paid for services, you are totally in the clear.
Good will or charitable mileage counts.
Remember all those times you helped out by volunteering? The second thing Millennials should know before filing taxes regards the mileage driven through volunteering. Most do not realize that mileage driven as a volunteer is deductible. If you drive to your volunteer location (or any place for that matter), while volunteering, make sure to keep track of those miles. You can deduct 14 cents for each mile, as well as all the parking or garage fees.
You should know about financial planning expenses as well.
You’ll be pleased to understand that deductible items include financial planning expenses. This also regards subscribing to an investment newsletter, paying an advisor to review your retirement plan, or having an attorney prepare a living will. Under the Internal Revenue Code, most expenses for investment management are tax deductible, so keep this in mind when you file.
Have your paperwork ready.
It goest without saying that before you step into your tax preparer’s office, you should have all your paperwork in order. This includes your proof of identification, dependent’s information, and income documentation such as W-2s. If you are utilizing any of the deductions mentioned above, bring your supporting receipts. Additionally, if you have the ability to scan your documents into your computer prior to filing, you will be able to retain copies of this paperwork indefinitely. Some places require originals during submission, so if you have not scanned or copied on your own, they may be forfeited forever.
Job hunting expenses make the list, too.
This is by far the most overlooked deduction. Any expense encored while you were in search of your dream job is tax deductible. Furthermore, once hired, your uniform costs, tools, dues, or publications related to employment count. Don’t forget to write these things off.
Are you ready?
Our list of top 5 things Millennials should know before filing taxes is complete. Did you catch any things that you could’ve missed? Charitable mileage, job hunting expenses, and tax prep fees are all included.