NEFCU Tip: Commonly Overlooked Tax Deductions
By GreenPath Financial Wellness a national non-profit partnered with New England Federal Credit Union (NEFCU) and VSECU, a division of NEFCU, committed to improving people’s quality of life through financial wellness.
Since preparing for taxes can take some time and the tax filing deadlines are approaching, we want to make sure you are aware of some commonly overlooked deductions that can help lower your tax bill. (If you are ready to check taxes off your list, click here to file free here.)
Job Searching
Hunting for a new job? Related expenses may be tax-deductible. Costs such as resume preparation, travel expenses for job interviews, and even fees paid to employment agencies can be claimed as deductions. While there are limitations and criteria to meet, exploring this deduction can ease the financial burden that accompanies unemployment.
Student Loan Interest Paid by Others
There are instances where parents or others contribute to the repayment of a student loan. In these cases, if the individual is not claimed as a dependent on someone else's tax return—and is legally obligated to repay the loan—they can still benefit from the tax deduction for the interest paid by others. This gives a valuable opportunity to families or benefactors assisting with educational expenses to alleviate the burden of student loan interest.
Educational Expenses
Whether you're enhancing your skills for your current job or investing in a new career path, some educational deductions can maximize your tax savings and help ease the financial strain. The Lifetime Learning Credit and the American Opportunity Credit are two valuable options. These credits cover qualified education expenses, including tuition, fees, and course materials.
Child and Dependent Care
Did you pay for childcare while working or job hunting? If so, you likely meet the criteria. Typically, your child must be 12 or younger and considered your dependent. This credit also applies if you're paying someone to care for a spouse or dependent (irrespective of their age) if they are incapable of self-care. In most instances, you'll need to acquire the care provider's social security number or taxpayer identification number and include it on your return.
Energy-Efficient Home Improvements
If you made upgrades to your home, such as solar panels, energy-efficient windows, or a new HVAC system, you may be eligible for tax credits. The Residential Renewable Energy Tax Credit and the Non-Business Energy Property Tax Credit can provide substantial savings. Not only do these improvements help the planet, but they can also boost your tax refund. Thinking of these upgrades for next year? Check out ways NEFCU/VSECU can support https://www.vsecu.com/personal/green-loans/.
*GreenPath Financial Wellness does not provide legal or tax advice, this information is intended for general guidelines only.
For additional questions on the above tips or more, reach out to NEFCU’s local financial counselors who are here to help. Use this link to set up an appointment to continue the conversation.
The above article is shared by NEFCU’s partners at Green Path Financial Wellness, a trusted national non-profit.