Smart Ways to Save on Taxes You Might Not Know About

Taxes might not be exciting, but there are plenty of ways to save money each year. Here are some often-overlooked deductions that could put cash back in your pocket!

1. Student Loan Interest

• Even if your parents help with payments, you can claim this deduction.
• The IRS treats parental help as a tax-free gift.
• If you’re not claimed as a dependent, you may deduct up to $2,500 in interest.

2. Teacher Classroom Expenses

• K-12 educators often pay for supplies out of pocket.
• Teachers can deduct up to $250 for classroom materials.

3. Military Reservist Travel

• If you travel over 100 miles for drills and stay overnight, you qualify.
• Deductible costs include:
  • Mileage
  • 50% of food expenses
  • Lodging costs

4. Job-Related Moves

• Moving over 50 miles for work? You can deduct:
• 23 cents per mile for relocation
• Tolls and parking fees

5. Medical Expense Strategies

• Only some healthcare costs qualify, but alternatives exist:
• FSAs and HSAs let you use pre-tax dollars for medical expenses.

6. Babysitting While Volunteering

• New ruling allows deducting babysitting costs if:
• You’re volunteering while the sitter watches your kids
• Counts as a charitable contribution

Remember: Knowing your deductions means keeping more of your hard-earned money for your financial goals!