Throughout tax season, many of us are asking “Is it deductible?” Deductions are generally good, as they are subtracted from your gross income to reduce the amount of your income that is subjected to taxation.
But do you really know what counts as a deductible item on your taxes?
Sunset Bank has a tax deductibility quiz to help you learn a little more about this side of your taxes. Maybe this information will help you see a return on your taxes this year!
- Last year you accepted a new job that required you to move. True or false: you can write off moving expenses even though you don’t itemize. A. True B. False
- You use your accounting knowledge to do the books for a community non-profit. This is a nice deduction, right? A. True B. False
- True or False: alimony is tax deductible. A. True B. False
- True or False: child care payments can be deducted by the payer. A. True B. False
- Out-of-pocket charitable contributions, through payroll deductions or charitable gifts, are deductible. A. True B. False
- Sending your kids to private elementary or high schools pays off as a tax deduction, true or false? A. True B. False
- You made a payment on your child’s college loan. Who gets to take the deduction? A. You B. Your child
- You had to find a new job last year, and racked up some expenses – gas for your car, parking, tolls, food and lodging (for overnight stays), and printing costs. You can claim these as deductions. A. True B. False
How did you do? Even if you didn’t do so well, we hope you learned something that will be beneficial this year.
For more information about your taxes and what deductions are available, be sure to contact your tax advisor.
Good luck from Sunset Bank!