April 15 is just around the corner and there are plenty of ways that you can save money this year. Whether you are saving for a mortgage or just looking to have more money in your pocket, the new article by the Equifax Finance tax expert Eva Rosenberg is for you!
Just a few of the tips you will find in the article “Tax Facts: 6 Tax Deductions to Remember This Tax Season” on the Equifax Finance Blog are:
- Medical deductions. This year, those age 65 and over can reduce their medical expenses by 7.5 percent of their adjusted gross income (AGI). This benefit will last until the 2017 tax year. The rest of us—people younger than age 65—must reduce medical expenses by 10 percent of AGI. Even with active adult housing and moving in place situations becoming more affordable, there are many high expenses for senior care, so keep this adjustment in mind.
- Sales tax deductions. Make sure you get this one, as it ends with the 2013 tax return. It may be reinstated, though, because it was designed to give a break to people who live in states without income tax. For 2013, you can use this tool from the IRS to figure out your sales tax deduction based on family size and income. Add in any major purchases, such as a car, boat, airplane or RV. If the total is higher than the state income taxes you paid in 2013, use the sales tax deduction instead. An added bonus to this deduction: Deducting sales taxes instead of income taxes means the state tax refund you receive in 2014 won’t be taxable.