Lake Minnetonka tax deductions are valuable commodities. And like most valuables, they are often well guarded. Deductions have been compared to buried treasure — because they are so valuable and they’re often buried, or at least hard to find. Deductions reduce the amount of income you’re taxed on, which reduces your tax liability. Here are a few deductions that are often overlooked.
5 Overlooked Lake Minnetonka Tax Deductions
Charity. Most people are aware they can deduct charitable contributions. But, did you know that if you volunteer your time you can also deduct 14 cents per mile to and from the charity’s location? In addition, you can deduct the cost of supplies needed for the work you perform for the charity.
State Sales Tax. When you’re filing your tax return, you have to choose between deducting state sales taxes and state income taxes. So, this deduction is best for those taxpayers that don’t have a state income tax.
Dependent Care Credit. While most parents of young children are familiar with the dependent care credit, many may not be aware that it may also apply to summer day camp costs. You may even qualify for a deduction for adult dependent care. Some restrictions apply, of course, but it may be worth looking into when you’re looking for Lake Minnetonka tax deductions.
Retirement Plan Contributions. Contributing to your retirement plan can earn you a deduction. If you are in the low to moderate income range, you may also be able to earn a tax credit for the contributions to your retirement account. For more information, search the web for Retirement Savings Contribution Credit.
Job Search. If you’re searching for a job, you can deduct a number of things such as employment agency fees and resume preparation costs. Every dollar you can deduct can save you from 10 cents to 40 cents on your income taxes. So it pays to find as many Lake Minnetonka tax deductions as possible that apply to you. Be diligent in your search, or even better, consult a tax professional well versed in deductions for which you may qualify.
For more information on Lake Minnetonka taxes, see our articles to the right under Taxes below Lake Minnetonka Real Estate Categories.