Tax Credits & Deductions DC Residents and Millennials Should Take Advantage Of !

Tax Credit and Deductions

 

Tax season is upon us, and while many people wait until the last minute to get their taxes taken care of , I try to file mine within two weeks of receiving my W-2 (s) !

 

For 2017, there’s no reason to pay more than $70 to get your taxes done if you aren’t itemizing and/or expect a complicated return. Turbo Tax, Tax Act and Credit Karma are processing Federal and State returns for FREE, but if you’d like the bonus security of accidental errors they offer a small fee to have your back. Below, check out the credits and deductions that I wasn’t aware of last year, and apply them if you can.

CREDITS FOR DC RESIDENTS:

PROPERTY TAX CREDIT

You guessed it, this credit is for DC property owners, but ALSO renters that earned below $50k ($60k if 70 or older). The credit is $1,000 for this tax season.

GOVERNMENT EMPLOYEE HOUSING CREDIT  

This credit is for government and public service employees of DC who may be eligible for the first time homebuyer’s credit! The credit is $2,000 and is available up to 5 consecutive years if the employee remains eligible.

DEDUCTIONS ANY ELIGIBLE USA TAX PAYER CAN TAKE ADVANTAGE OF:

JOB SEARCH EXPENSES        

Again, this one is pretty straight forward, this deduction includes expenses for a resume that can include production, designing and editing you paid to a professional. The only thing, the job has to be in the field you are working in now. It also includes job board membership fees, travel expenses to/from interviews and interview clothes (clothes that you would not regularly wear on the job). Start searching your email for receipts !

2nd JOB EXPENSES          

If you work at two different locations (same or different employers) on the SAME DAY you can deduct costs of transportation from the first job to the second job (No, you can’t deduct your commute back home, LOL) ! DC residents, this is the metro fare paid from job A to B weekly/monthly added up for the year. Drive? Monitor the mileage driven weekly/monthly and probably multiply the miles by the current federal mileage rate ($0.54 cents) to the get the amount to deduct. I did not work two jobs on the same day in 2016 so I am not 100% sure.

I hope you can take advantage of at least one of the above tips. Share if you have any additional tips !

 

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2 Comments

  1. February 10, 2017 / 11:48 pm

    Love this! Not from DC personally but it’s posts like these that help educate, inform, and promote financial literacy – especially amongst millennials. Keep it up the great info girl! 🙂

    http://www.thewerklife.com

    • February 11, 2017 / 2:42 pm

      Indeed, thanks ! 🤗

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