Hey Minnesota, Don’t Lose Money When Filling Out Your Taxes This Year

It’s that time of year again, Tax Filing time. Some folks really look forward to this each year because they know they’re going to get money back from the government.  

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There are many reasons why people get money back on their taxes, one of the biggest is the child tax credit.  

There are some folks out there who don’t really understand the whole process of taxes or what constitutes a deduction. I am not close to understanding what all is or is not a deduction, but I have learned over the years, depending on what you do for a living, there can be many things you use for your business that fit those criteria. 

But of course, you’ve got to reach a certain amount of money spent before you hit the mark that allows things to be itemized. Less than 10% of returns were itemized in 2020.  

I stumbled across this article from AARP this week about some things that you can file on your taxes to get a break from the IRS on without having to itemize your return. 

These are things you may not realize could help your situation with the IRS.  

Alimony- 

If you divorced before 2019 and are paying alimony, your payments can be a deduction for you. But, if you ended your marriage after Jan. 1, 2019, your payments cannot be applied as a deduction. 

Early Withdrawal Penalties- 

If you had or chose to access a bank certificate in the last year, the penalty can be a deduction for you as well. (That may help soften the blow of having to pay that penalty). 

 Health Savings Accounts- 

If you have a high-deductible medical plan, some of your money paid to meet the point where it becomes deductible could count for you. 

IRA’s/Individual Retirement Accounts- 

If you are 50 or older you can contribute $6,500 to $7,500. And you can make contributions to your IRA until April 15th of this year that will still be counted for you. You could also have more of your IRA contributions count as a deduction, depending on how much money you make each year. 

Military Moving Expenses- 

If you move from assignment to assignment, or from home to a military base or a military base back home, a reasonable amount of the expenses occurred here can be deductible. 

Self-Employment Expenses- 

If you are self-employed and pay for your own insurance, contribute to a retirement plan that you have set up or possibly even an employee incentive match plan can bring you a deduction. 

Interest from Student Loan Payments- 

If you have been paying back loans for school, the interest paid up to $2,500 can be a deduction for you. 

 With any of these listed above, you should always consult your tax professional to discuss your personal situation.