Here are five deductions you might be overlooking:
Contributions to 401(k) or traditional IRA accounts may be tax-deductible and those over 50 can make catch-up contributions, increasing potential tax savings.
Are you Self-employed? SEP IRAs and Solo 401(k)s offer higher contribution limits.
HSA contributions are tax-deductible even if you don’t itemize and funds grow tax-free and can be used for medical expenses.
Contributions to your HSA also reduce your taxable income, you need to have High Deductible Health Plan ( through your employer or healthcare.gov )
Deduct part of your rent or mortgage if you use part of your home exclusively for business. A simplified option allows a $5 per square foot deduction for up to 300 square feet.
Cash donations to qualified charities are deductible and non-cash donations, like clothing, can also provide tax benefits.
You can deduct up to $2,500 annually in student loan interest and the deduction applies even if you don’t itemize.
Income limits may affect eligibility, so check your qualifications.
Maximizing these deductions can reduce your tax burden and improve your financial efficiency. Always consult a tax professional to ensure you’re taking full advantage of all available deductions.
Like most things with taxes it is always best to consult a financial professional and/ or a tax advisor before trying to implement any of these strategies. Let us know if we can help and Let's Talk soon.
We hope you have a great weekend and enjoy the Labor Day Holiday!
All the best,
Wela Financial Advisory
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Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. This article and images may have been enhanced by utilizing artificial intelligence (AI). Brent Forrest & Associates, LLC dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Wela may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
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