Top 5 Tax Deductions People Miss in Florida

Filing taxes can feel like a daunting and stressful task, but it doesn't have to be!

 

With a bit of knowledge and organization, you can uncover valuable deductions that might just save you a significant amount of money. Today, we’re diving into the top five tax deductions that people often miss, especially for those of us living in sunny Florida. Knowing about these can save you a bundle, and hey, who doesn't want to keep more of their hard-earned money?

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1. Medical Expenses

Many taxpayers overlook medical expenses because they assume they won't meet the threshold for deduction. However, if your medical expenses exceed 7.5% of your adjusted gross income (AGI), you can deduct them. This includes everything from doctor visits and prescription medications to health insurance premiums and even mileage driven to medical appointments. Every little bit counts!

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2. State Sales Taxes

Florida doesn't have a state income tax, so you can choose to deduct state sales taxes instead. This is a big one! The IRS provides tables to determine how much you can deduct based on your income and the sales tax rate in Florida. Plus, you can add on sales tax from major purchases like a car or boat. Don’t leave this deduction on the table.

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3. Charitable Contributions

Many people remember to deduct cash donations, but did you know you can also deduct the value of goods donated to charity? Items like clothing, furniture, and even a car can be deducted. Just make sure to keep receipts and documentation from the charity. If you volunteer, you can also deduct mileage driven for charitable activities.

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4. Education Expenses

The Lifetime Learning Credit is often overlooked, yet it can be a big help for those pursuing higher education. You can claim 20% of the first $10,000 you spend on tuition and fees, up to a maximum of $2,000. This credit is available for both undergraduate and graduate students, and there's no limit on the number of years you can claim it.

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5. Home Office Deduction

If you work from home, you may be eligible for the home office deduction. This deduction is available to both self-employed individuals and employees (if your employer requires you to work from home). You can deduct a portion of your home expenses like rent, utilities, and internet, based on the percentage of your home used for business. Just make sure your home office is used exclusively for work purposes.

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Bonus Tip: Get Organized!

One of the biggest reasons people miss out on these deductions is lack of organization. Keep detailed records throughout the year, and don’t wait until the last minute to gather your documents. Use software or apps to track your expenses, and consult with a tax professional to make sure you’re getting all the deductions you’re entitled to.

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Wrapping Up

In conclusion, these tax deductions can make a significant difference in your tax bill. By staying informed and organized, you can maximize your deductions and credits, and who knows—you might even look forward to tax season next year! Happy filing!

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How Can We Help You? At Tax Consulting Group, we're dedicated to helping you navigate the complexities of the tax world with ease and confidence. Whether you're an individual or a business, our personalized service is here to ensure you get the most out of your deductions and credits. Reach out to us today for expert tax advice and assistance!​