Fall Tax Deductions to Take Advantage Of

Of course you don’t want to be thinking about taxes during the fall months, but did you know that there are many different deductions that you can claim that might happen within the next few months?  Below are three things that tend to happen in the fall that are tax deductible.  See if you can qualify for any of them.

Charitable Gifts

Any charitable gift that you donate this fall is tax deductible.  This includes any clothing or items you donate to the thrift store when you clean out your home, food items you donate to the food bank, or even school supplies you donate to your child’s school (so don’t be a stickler when your child’s teacher asks you to donate an extra box of crayons or a few markers).  Every item you donate is worth however much you paid for it (so keep your receipts!), or how much it would sell for at a thrift store if it is second hand.  However, your time is not deductible, so unfortunately, the time you spend serving in a soup kitchen will not reduce your taxes.  Luckily, your mileage is deductible when you drive to various charity events.  

Birth of a Child

July, August, September and October are the most popular months of the year for babies to be born.  If you have a child this year, you have a new dependant, therefore you will be able to claim them on your tax return.  You will receive a $1,000 tax credit if your family has a child this year.  You also will be able to claim the child care credit if you have to pay someone to look after your child while you are at work.  If you adopt a child, the IRS offers a tax credit to help offset the costs.  

Schooling

If you are going back to school this fall, or even just taking continuing education courses, you can use the lifetime learning credit. You can claim up to $2,000 of this credit, or 20% for the first $10,000 you spend.  Tuition and other expenses such as books and supplies can count towards this credit.  So if you have been waiting to re-start your education, now is the time to do it.  You can go back to school full time, or even take a few classes at night to help you build your skills and get a tax break while you’re at it.