It's time to do your annual taxes and you have to write off all of your deductions. These help you save money, but the problem is that there are so many deductions that you may not know what you qualify for. Here are three overlooked deductions that may help you save a little money this year.
Traditional IRA Contribution
Have you placed money into an IRA account this year? As long as it was a traditional IRA and not a Roth RIA, then you are able to write off your contributions. You are able to contribute up to $5,500 per year towards a traditional IRA unless you are over 50, in which case you can contribute $6,500. You can deduct the whole contribution and save a good amount of money on your taxes. Speak with local CPA firms in Las Vegas for more information.
No one wants to lose money on their investments, but even those losses can be useful. If you gained more overall, then you can use the losses to offset your capital gains tax. If you just lost money without any gains, then you can actually write off those losses. You can write off up to $3,000 for your capital losses for each year. If your losses exceed this limit, then you can actually carry them over into the next year.
Student Loan Interest Paid by Parents
This tax deduction only applies if you are the student and your parents are helping pay the interest on the bill. If your parents are helping you with your student loan, then according to tax law it's the same as if they gave you the money directly to pay for the bill. In this case, you are able to write off up to $2,500 per year for the interest. Just remember that your parents won't be able to write off the expense since you are technically the only one liable for the bill.