Throughout your life as a tax payer, the tax landscape will always be shifting. One of the biggest mistakes people make is thinking that this year’s taxes are going to be just like last year’s taxes. Even if congress doesn’t change any tax laws, you’re still effected by changes in rules and as you enter different phases of your career, new tax breaks can open up to you.
Let’s say you graduated from college last spring – woo hoo congrats! – and moved to take your first job, did you know you can write off the cost of that move? As long as the job is at least 50 miles away from your college home, you can deduct the cost of your move, including the cost of shipping anything that doesn’t fit in your car!
Speaking of cars, deduct 23.5 cents per mile in 2014 for any job related move. It used to be you had to itemize to get these tax breaks, but now you can deduct these costs on the face of the 1040 so you get the benefit even you if claim the standard deduction.
Let’s say after you retire you decide to start you own business, maybe as a consultant. Did you know that if you’re self-employed, you can duct the premiums you pay on Medicare? Don’t forget to include the fee that is automatically deducted from your social security benefits.