Struggling With Tax Debt? Know Your Deductions!

: Chris Lee Law Firm

  Filed under: Tax Debt

tax deductionsSadly, many people who are burdened with tax debt don’t know about all of the deductions they might be eligible for.  While you may be going through the tax debt negotiation process this year, be sure you keep track of a few oft-overlooked tax deductions and credits so next year you won’t be facing any tax debt.  We’ve put together a short list of a few of the most often overlooked deductions and credits.

Don’t Miss These Deductions!

Avoid incurring tax debt when you take advantage of these income tax deductions:

  • Health insurance premiums.  If you take advantage of an employer plan, your health insurance premium should already be deducted.  However, if you are purchasing your own health insurance plan, make sure you deduct the premium!  Those dollars really add up, and every one you can squeeze into the deduction line can help you save big!
  • Non-Federal (i.e. State/Local) Taxes.  Under certain circumstances, these may be deductible.  This can be a bit of a grey area, and the regulations will of course vary between localities, so consult your tax lawyer/CPA.
  • Student Loan Interest.  Did you know you can deduct any interest that you pay on student loans?  The loans can be a great burden when added to tax debt, so you might as well put them to work for you!
  • Disaster Relief.  Were you in a natural disaster area this year?  Did you or your property incur any damages as a result?  If so, there are deductions you could be eligible for!

This is just the beginning of deductions you need to know about this year.  If you’re going through debt negotiation right now, the process could be a distant memory once you start filing taxes knowledgably, taking advantage of all the deductions you can!

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