We love to share our know how to help our clients make the most of their tax return. However, we often notice how little some of them know about all the credits and deductions available to them. Below we will answer if you are missing out on $5,000 in your 2025 tax preparation.
1. The Lifetime Learning Credit
Education costs aren’t just for college kids. Many adults choose to continue their education, learn a new skill, earn certifications, and much more. All of these may make you eligible to take the Lifetime Learning Credit. This tax credit is to help offset the cost of qualified tuition at an eligible educational institution. It may also be used for related expenses for undergraduate, graduate, and professional degree courses. You can claim the credit for as many years as you study and it is worth up to $2,000 per each tax return.
To be eligible you must meet one of these criteria:
- You may be the eligible student, your spouse, or a dependent on your tax return.
- You, a dependent, or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution.
- You, a dependent, or a third party pay qualified education expenses for higher education.
2. Healthcare Expenses
We all know the cost of healthcare can be immense. However, there is a tax trick to help you write these off. We recommend you keep receipts of all your healthcare expenses each year. If they reach over 7.5% of your income, you may be able to deduct the expenses on your taxes.
This includes healthcare expenses for:
- Doctor visits.
- Clinic, hospital, urgent care visits.
- Medications and prescriptions.
- Medical devices, aids, and related items.
- Lab work and imaging.
- Physical therapy.
- Co-pays and deductibles on your insurance.
- Out of pocket expenses not covered by your health insurance.
- And even insurance premiums.
- You can even write off the miles driven to and from while getting healthcare.
Many taxpayers are leaving money on the table…they’re very unaware of a lot of the various tax credits that they can use to offset their tax liability. Source: Fox Business
3. SALT Deductions
The State and Local Tax Deduction get you up to $10,000 when you file an itemized tax return. It allows you to deduct income taxes, property taxes, and even the DMV fees associated with your regular business and personal life. In short it allows you to deduct some state and local taxes. Of course, these vary by state to state but are worth asking your bookkeeper about. However, this deduction may expire or change in the next year.
More 2025 Tax Preparation in Houston
Do you want to make sure you are not leaving any money on the table? Get the help of a bookkeeper and expert tax preparation services by contacting us at B&J Bookkeeping & Taxes for more information.