@wealthwithtess: Follow 👉 to grow your money and confidence Here are 3 overlooked tax deductions I want to highlight this year: 1. Out-of-pocket charitable contributions: Yes, you can deduct charitable contributions but did you know you can write off out-of-pocket costs you incur while doing good deeds? Ingredients for food you prepare for a qualified nonprofit organization’s soup kitchen or the cost of stamps you buy for your school’s fundraiser count as a charitable contribution. If you drove your car for charity in 2021, you can deduct 14 cents per mile. 2. Student loan interest paid by you or someone else: You may know that you might be eligible to take a deduction on your student loan interest but now even if someone else pays back the loan, you can still deduct interest paid. So, a student who’s not claimed as a dependent can qualify to deduct up to $2,500 of student loan interest regardless of whether it was paid by you or by someone else. 3. Reinvested dividends: Okay fine so this isn’t really a tax deduction, but it is a subtraction that can save you a lot of money and ya'll know I love investing so I had to include this one. If, like most investors, you have mutual funds, you need to be 100% sure that your dividends are automatically invested in extra shares. Each reinvestment reduces the amount of taxable capital gain (or increases the tax-saving loss) when you sell your shares. This is done in your 401K automatically but in your other investment accounts, you'll need to go in and make sure you are reinvesting your dividends. Otherwise you'll just start accumulating money in cash that's not invested and then you miss the whole point of compound interest. Save this post for later! #fyp #foryoupage #taxseason #taxdeductions #investingforbeginners #studentloandebt #PersonalFinance #financialindependence #financialliteracy #HuluChippendalesDance

Tess Waresmith

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Region: US

Wednesday 23 November 2022 16:42:46 GMT