What are the Largest Tax Deductions Offered in 2013?

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A lot of people pay too much back on their taxes, simply because they are unaware of some of the (potentially) biggest and best tax deductions they could qualify for. Don’t let this be you! This year, put in the effort it takes to research available tax deductions, determine which ones you qualify for, and then to file accordingly. Sure, it’s not a fun job, and it might cost you a little bit of time, but you’ll be happy when what you owe ends up being a whole lot less than it was last year.

Many people think that they can only write off big cash donations. In an effort to get the desired write-off, they then will spend lots of money donating to charitable causes. While this is a noble thing to do and might make your heart feel good, it won’t likely do the same for your wallet. While it’s fine to donate cash, keep in mind that non-cash donations can earn you a deduction as well. Whether you’re donating old clothes or home goods, furniture, books, or holiday gifts for the needy, make sure you get a receipt from the organization to which you donate. You can tally up your good deeds at the end of the year and get a little something in return.

Are you currently paying a health insurance premium? If so, good news could be in store for you. The way to find out if you qualify for a tax deduction or not is to look at your medical expenses. If they go above and beyond 7.5% of your income, then you likely qualify for a tax break. Of course, you could find a better insurance plan to be even more cost-efficient, but until that happens, settle for a good tax break!

Do you work in the school system? As long as you teach or otherwise work in an elementary or high school, you can get a big tax break on the materials you buy related to your work. This includes everything from notebooks to those red pens you likely use for grading. The only catch is that you have to remember to keep track of your purchases and how much you’re spending. The easiest way to do that is by keeping the receipt each time you buy something to be used at work.

Those who make an effort to make their homes more environmentally-friendly aren’t just doing something good for the planet; they’re doing something good for their pocketbooks as well! If you’ve added energy efficient appliances, a skylight, or anything else that is going to enable your home to leave behind a smaller carbon footprint, then you likely qualify for a well-deserved tax deduction!

These are just a few examples of great tax breaks you could qualify for. Don’t stop here! Keep on researching, and you’ll likely find that there are many more ways in which you can save money this year and for years to come.


Have a tax question? Ask one of our tax professionals.

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