Good Lifestyle

The Internal Revenue Service (IRS) will probably not start Accept 2022 income declarations Until the end of January, but the agency already provides news than taxpayers: many of us "will probably receive a much smaller refund "Next year compared to this year due to a drop in tax credit levels and recovery checks. But if you count on reception of a similar amount for your 2022 taxes, there is still time to take measures with last -minute deductions before the year is in place.

Deductions "reduce the Amount of your income Before calculating the tax you need, "according to the IRS. Consequently, taxpayers will have to pay" less taxes on their income, and this can even lead to a tax refund "," Adam Pippington , An experienced financial expert And the CFO at Freedom Dividend, says Better life . For these deductions to count for your next income declaration, however, you will have to take them by December 31. Read more to discover the five last -minute deductions that tax experts recommend.

Read this then: This deduction could make you report an audit by the IRS, warn the experts .

Help with your taxes by helping others. Luke Williams , a financial expert With expert insurance exams, advises taxpayers to make more charity donations at the end of the year because they are tax deductible. "The cleaning of your old closets, garages and storage spaces and giving things that you no longer use is an excellent way to give to those who need it while reducing your tax obligation and potentially increase your yield", explains- he.

But there are certain things to remember with this last -minute deduction: "Donations only to a qualified charity and keep a trace of everything you give," explains Williams.

According to the IRS, "you must maintain a recording of your contribution" for any monetary gift, regardless of the amount. This includes the maintenance "of a banking file or a written communication of the qualified organization containing the name of the organization, the amount and the date of the contribution," says the agency.

You may want to put more money on your retirement now to help you come from the tax. "" The smartest way to take advantage of all the last -minute tax deductions is to contribute as much as possible to your retirement accounts, "said Jake Hill , a financial expert and CEO of Debthammer. You will want to add to your traditional individual retirement account (IRA), "as these contributions are tax deductible", explains Hill.

On the other hand, "Roth will contribute are not deductible "According to the IRS. The agency also warns that the amount you are authorized to deduct for a transitional IRA could be capped according to your retirement plan.

"Your deduction can be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels," explains the IRS. But if you and your spouse are not covered by a retirement plan on work, "your deduction is authorized in its entirety."

Read this then: The IRS warns that you may be sentenced to a fine for having forgotten this on your taxes .

Another last minute useful deduction that you can take implies something that most of us have in common: education debt. "The interests of student loans can also be deducted," explains Tommy Gallagher , a Former investment banker And the founder of Top Mobile Banks. "This is particularly useful for those who have a student loan debt above average." AE0FCC31AE342FD3A1346EBB1F342FCB

You are authorized to deduct up to $ 2,500 in student loan interest payments, according to Leona bass , a fiscalist And the marketing director at Loan Advisor. "So, if you choose to detail and have a student loan debt, don't forget to include this," advises Bass.

Are you on a high franchise health plan? If this is the case, you must "contribute to the health savings account", also known as HSA, according to Taylor Jesse , a certified accountant and financial planner . "An HSA is a bit like an IRA, except that it is intended to pay health costs and not retired," she explains. In order, contributions to this type of account are also tax deductible.

"You can contribute $ 3,650 to an HSA if you are the only one on the health insurance plan (or $ 7,300 for several people)," said Jesse. "You can also save additional $ 1,000 if you are over 50 years old."

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According to Bass, your jostling is probably something that you "may have considered" in terms of tax deductions. But if you have managed to monetize your hobby in the past year, "you can deduct expenses related to your taxable income," she said.

"Suppose you love knitting and started selling your online knit products," said Bass. "You may be able to deduct the related expenses of your income, such as knitting needles, models and wires."

You can also use small business expenditure deductions if you have traveled in any way for your work. Steve Rose , a financial expert And the vice-president of Moneytransfers, reminds taxpayers to take into account the costs associated with the use of automatic counters when traveling. "If you are stuck at the airport or in a distant location and you need to use an off-network automatic counter, the costs that cause you can be reimbursed," he notes.

According to Rose, these fees must however have left your commercial account, which should be separated from your personal financial accounts. "You will also need proof that the accusation has been made while you are doing legitimate things related to companies, such as going to a conference or meeting a customer," he said.

Best Life offers the most up -to -date financial information for the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.