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Creative Tax Deductions

Tax season can be very intimidating time of the year for most; the main objective is to make sure the Internal Revenue Service gets as little as possible. However in order for that to happen, you need to make every income adjustment and take every tax deduction you can. So in order to help you with that process below we have listed some commonly overlooked tax deductions:

1. Student Loan Interest:

Quick question: Did you know that you can deduct the interest paid on student loans; even if you aren't the person that's paying it? If you meet the requirements, up to $2,500 in student loan interest can be deducted every year.

According to the IRS, the person who is legally obligated to pay back a student loan has the right to deduct the interest. Good news students, so even if your parents are the ones writing the check, you can still deduct that interest on your tax return.

But not so fast there boys and girls there are a few conditions, that prohibit you from making the deduction:

- If your modified adjusted gross income is greater than $75,000 for a single filer or $150,000 for a married couple filing jointly.
- If you're claimed as a dependent on someone's tax return (your parents', for example), then you cannot claim the deduction.
- If the loan is a Direct PLUS loan for parents or a similar loan in which your parents are legally obligated to repay it.

2. Moving Expenses to Take Your First Job:

You get this write-off even if you don't itemize. To qualify for the deduction, your first job must be at least 50 miles away from your old home. If you qualify, you can deduct the cost of getting yourself and your household goods to the new area. If you drove your own car on a 2012 move, deduct 23 cents a mile, plus what you paid for parking and tolls.

3. Out of Pocket Charitable Donations:

For example, the stamps you buy for your school's fundraising mailing count as a charitable contribution. Keep your receipts and if your contribution totals more than $250, you'll need an acknowledgement from the charity documenting the support you provided.

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About the Author

Jonathan Ezeokoli, Imperial Acquisitions LLC.
4 Sloan St. Office 2F
South Orange, NJ 07079
(973) 821-5808

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