Filing taxes can be draining on your wallet. Use these 4 tax write-offs to help save money come April.

When filing taxes in April, most Americans just go with the standard IRS deductions. These standards are based on age, income and filing status, and the standards change from year to year. For 2014, the standard deduction was $6,200 for those filing as singles and $12, 400 for joint-filing married couples. For those that choose to forego the standard deduction or are ineligible, itemizing is another way to go and can sometimes lead to a greater tax return resulting in more disposable income. Take a look at these frequently over-looked tax write-offs.

State and Sales Taxes

Of the 50 states, Nevada is one of 7 that does not have to pay state income tax. However, for the those in states that do pay state income tax there is usually a decision to be made to either take a standardized income tax deduction or to itemize their deductions. For the remaining 43 states residents may choose to either claim state and local sales tax, or state and local income tax (whichever is greater, but not both). Use this sales tax deduction calculator to help you determine the amount of eligible tax deductions you may claim, courtesy of the IRS.

Dependents

Children can be declared as dependents at different ages depending on a couple of factors.

• Until age 19 if not in school
• Until age 24 if in school at some point
• At any age if permanently disabled

However, parents can also be considered dependents, so those heroes that support both their children and their parents can find some extra tax breaks come April. CPA Curtis Erickson says, “If you’re providing more than half of a parent’s financial support, you may be able to claim your parent as a dependent. If that’s the case, besides getting a dependent deduction, you may also be able to claim your parents’ medical expenses when you itemize your own medical expenses.” In this way, the IRS is looking to help out the ‘sandwich generation’. The IRS actually allows for over 30 types of relatives to qualify for the deduction. Standard deduction for dependents is either $1,000 each dependent, or the dependent’s earned income plus $350 (whichever is the larger amount). Check out this TurboTax cheat sheet for more information.

Medical Care

“Probably the most hidden deductions are medical deductions because they are not reported to the IRS by medical providers, and the 10 percent income threshold for them makes the deductions meaningless for a great number of people,” says Dan Connors, a private practice CPA out of Missouri. The 10 percent threshold refers to the minimum amount needed to qualify for the tax write-offs. Whether your expenses are for smaller items like band-aids or medicine, or large ticket items such as health care premiums or paying for an in-home nurse, many different expenses are eligible for the deduction provided they break the threshold. Connors says that even such expenses as doctor ordered home renovations can be included.

Itemize

Save your receipts! It may seem easier to just take a standard deduction, but in some cases you may be eligible for a much greater tax write-off if you itemize your deductions and analyze it that way. Whether you are filing your taxes on your own, working with a CPA or heading to H&R Block, it might literally pay to take a look.

Each tax write-off can increase your disposable income, so it is best to be well versed on your state and local tax laws. Check out these frequently asked questions and information on Nevada’s tax laws, courtesy of Ashley Quinn, CPA.

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