Many times, individual taxpayers will opt for the standard deduction without considering how an itemized deduction may improve their tax return. That’s why ZP Tax—an income tax preparation service in Silver Spring, MD—is committed to helping their clients understand and maximize their deductions.
If you’re sprucing up your tax education, this tax help service says the best way to learn is by first becoming familiar with the most common types of deductions, including:
- Dependents: In addition to claiming a personal exemption for yourself, you are also able to make exemptions for those who depend on you financially, also known as dependents. Dependents may include your spouse and your children.
- Medical Expenses: Taking care of your health could really benefit your tax deduction ability, especially if you’ve had major costs to cover surgery or treat a disease. This type of deduction can also apply to prescription medication and medical equipment. Since health care costs can add up quickly, it’s important to save all your medical or dental statements for your next tax preparation.
- Student Loan Interest: Student debt is a major factor in modern America’s financial health. Fortunately, if you’ve taken out loans to cover the cost of your education, you may be able to add a deduction to your taxes. This common tax deduction applies to interest, so monitor and document the amount you’ve paid over the past tax year.
- Charitable Contributions: Giving back isn’t just good for the community, it’s also great for your taxes. While many people claim large donations they may have made to a non-profit charity, many other acts could go toward this deduction, including giving money to your church or making regular donations to a local thrift store.
- House Payments: Paying a mortgage is usually enough to convince a taxpayer to opt for an itemized deduction rather than a standard deduction. To determine what you can claim, consult the 1098 form your lender provides and look for the total interest paid during the last tax year.
A tax education specialist can help comb through your finances to maximize the tax return in your favor. For income tax preparation assistance in Silver Spring, MD, contact ZP Tax at (301) 587-4829. You can also visit their website to learn about their other financial services, such as business tax preparation and payroll services.