Millions of people in the country struggle to maximize their tax deductions yearly simply because they are unaware of excellent tax-saving opportunities. Tax season can be overwhelming and confusing for many. Every taxpayer wants to do what they can to minimize their liability and save as much money as possible. Still, sometimes it’s difficult to identify all the available potential deductions. Here is a list of potentially helpful tax deductions that are often overlooked. Commonly overlooked tax deductions State sales taxes If you reside in a state that does not impose income taxes, you may deduct the sales tax you paid throughout the year. Reinvested dividends You may have received dividends reinvested in additional shares if you own stocks or mutual funds. These reinvested dividends can increase your tax basis and lower your taxable gains when you sell the shares. Charitable contributions The Internal Revenue Service (IRS) allows taxpayers to deduct charitable contributions made for qualified organizations, including those supporting underprivileged children. To claim a tax deduction for your charitable contribution, you must provide documentation verifying your contribution. Student loan interest paid by parents If parents repay a student loan their child is legally obligated to repay, the IRS considers the money as if it was given to the child who paid the debt.

Every aspect of our lives is governed by money, from our homes to the devices we use and the clothes we wear. Managing one’s finances independently can be overwhelming, particularly for working individuals who do not have the time or expertise to understand investment trends. This is when a financial advisor provides systematic and timely guidance. Here are some key questions one must discuss with their financial advisor before making any financial decisions: What are your qualifications, and what experience do you have in your field? The first and foremost aspect to consider while shortlisting a financial advisor is understanding their eligibility to handle one’s finances. For example, a financial advisor’s website or social media handle may contain details on their qualifications and experience level; nevertheless, it is essential to enquire about such details during the first call to check the advisor’s credibility. Moreover, a one-on-one conversation helps understand whether the advisor can implement the knowledge gained through their courses. How will you align my portfolio with my financial goals? The first step to investing wisely is understanding one’s financial objectives and how they can be aligned with one’s investment plans. For example, a financial advisor should be able to create an investment basket tailored to fulfilling one’s short-term, mid-term, and long-term objectives.

You can pay later for goods and services using a credit card, which is one of the main reasons everybody wants one. Moreover, converting high-volume payments into short-term loans that accrue monthly interest is possible. But it would help if you were mindful of its use, as questionable card practices can push you further into debt. Here are the eight bad habits you should break while using a credit card. Not paying the total amount Delaying the full payment only adds to more spending on the accrued interest. It also affects your credit score and can potentially damage your credit history for any future loans. Making late payments Another bad credit card habit is paying past the due date, as the bank will levy penalties and extra fees. The rate of interest on future payments also increases. Overspending through installments Banks charge a nominal interest for every installment, so the bill does not seem like much when you first look at it. But multiple loans can add up due to overspending on installments and severely pressure your planned finances. Not using your card regularly Not using your credit card is a habit as bad as using it too often. Unused credit cards score low in the credit rating system, so banks or credit unions may cancel such cards due to inactivity.

Medicare is a health insurance program issued by the government. The program covers people aged 65 or older, certain people with disabilities, and patients with end-stage renal diseases. It encompasses several plans and is divided into four parts with certain services – A, B, C, and D. Out of these, Part A is free for those who’ve paid Medicare taxes for at least ten years, but the others have to pay a premium. Even though the program is helpful for many, some Medicare plans are complicated in terms of coverage. This makes it difficult to understand. They might cover various aspects of health care, but many conditions are not covered as well, some of which include: Dental care Medicare plans may cover basic health care services and X-rays, but they have a limit of $1,500 annually. Medicare plans may not cover routine dental checkups and treatment of certain dental services. They also do not cover dentures and fillings. However, in the case of emergency hospitalization, patients can use Part A to pay off certain dental services. Long-term hospitalization Usually, all Medicare plans cover up to 90 days of hospitalization. The benefit period begins on the first inpatient day at a hospital or nursing facility and ends when inpatient care isn’t received for more than 60 days.

As the end of the financial year closes in, many people find themselves scrambling to file income tax returns in time this year. The Internal Revenue Service (IRS) issues strict guidelines for ensuring a smooth and quick tax filing process. The last thing you want is a notification from the IRS citing an issue with the income tax return submission. So, here are six mistakes to avoid when filing your income tax return: Filing returns prematurely You might receive documentation regarding your current financial status, and this information has to be updated with the IRS. Filing prematurely can result in mistakes like omissions that only delay the processing of returns. Choosing the wrong form or filing status The IRS issues several forms for individuals, businesses, commercial establishments, and government entities to file returns. Ensure you choose the correct form and update the filing status on the official website. If there are dependents in the house or you are filing for a joint return, your filing status can vary accordingly. Making calculation errors Adding the wrong amount, excluding critical tax breaks, or even making mathematical errors while computing your income tax return are issues that IRS software can detect. However, miscalculating the return can delay the process.

The Internal Revenue Service, or IRS, is the governing authority that processes tax returns filed by individuals and businesses and issues refunds. The IRS has issued sizeable refunds worth thousands of dollars in recent years. Individuals can use the money to meet daily expenses and pay pending bills. But to be eligible for prompt refunds, here are some common mistakes you should avoid while filing your tax returns this year. Updating the wrong filing status The IRS lets you file as a single taxpayer, a married taxpayer filing jointly/separately, a qualifying widow/widower, or a sole head of the household. Entering this information correctly is critical while updating the return. Filing under the wrong section can delay processing and refunds. You might even be subject to penalties if there are errors in the calculation. Not reporting all taxable income Salaried employees working for an organization should properly mention any income subject to taxes on Form W-2. Freelancers can report their income using Form 1099. Different kinds of employment and earnings are subject to different tax slabs. The bottom line is that you should never underreport your earned income in the said financial year. If the IRS notes discrepancies, it can order an audit that will lead to subsequent penalties and interest.

Concert tickets sell out quickly and sometimes within minutes of announcing the event. The more popular an artist is, the harder it becomes to buy tickets, either online or in person. This is when scammers swing into action and launch a barrage of lucrative offers. Some tickets are sold for dirt-cheap prices, some are duplicates, and mostly these are just schemes to swindle people out of their hard-earned cash. Here is how you can avoid getting scammed. Check minute details Scammers sell tickets with a fake barcode or serial number for the registered event. This is hard to spot, but you need to know that these details won’t appear randomly on the ticket. Look for printing mistakes, invalid QR code scanners, and details that stand out. You can easily verify the authenticity using apps you can download to check barcodes. Don’t pay third parties Scammers usually have a third-party payment or merchant banking service to collect the sale proceeds. With third-party portals, there is no way to get your money back once it’s processed. When buying tickets online, make a payment once you confirm that the ticket money is being processed by the authorized online partners registered with the event.

When considering low-risk investment options, a certificate of deposit (CD) is one of the most common options. CDs offer a safe way to grow savings while earning a fixed interest rate over a set period. However, like any financial endeavor, opening a CD requires careful consideration and knowledge to avoid common pitfalls and get the most out of the investment. So, here are five common mistakes to avoid when opening a CD: Not exploring all options One of the most common mistakes while opening a CD is not shopping around for the best rates. Banks and credit unions offer varying interest rates on CDs. Failing to compare rates could make one miss out on higher returns. So, one must explore various financial institutions and choose one offering the most competitive interest rates. Ignoring the fine print All financial products come with terms and conditions, and CDs are no exception. Ignoring the fine print could lead to unexpected surprises and financial losses. Some CDs have penalties for early withdrawal, while others may automatically renew at less favorable rates. So, it is crucial to read and understand the terms of the CD agreement beforehand to ensure it aligns with individual financial goals.

Investing in precious metals is a smart addition to diversifying an investment portfolio. Precious metals are a popular commodity and a less volatile market when compared to stocks. With multiple regulatory authorities and trading platforms, investing in precious metals hassle-free has also become easy today. But there are many points one must consider and be well-informed before investing. Here are some key things to know before investing in precious metals. Understand the types of precious metals Gold, silver, platinum, and palladium are popular precious metals with unique characteristics, market demand, and investing dynamics. Invest only after a thorough comparison. Diversification Precious metals can be an effective way to diversify any investment portfolio. They often have a low association with other assets like bonds and stocks, which can help reduce overall portfolio risk. Storage and security Physical ownership of precious metals necessitates the need to invest in home security. Options include home safes, bank safety deposit boxes, or third-party storage facilities. Be sure to consider the associated costs and security measures before buying assets. Physical vs. paper investments There are two ways to invest in precious metals: purchase physical bullion (coins or bars) or invest through paper investments like exchange-traded funds (ETFs), online futures contracts, or online mining stocks.

The process of securing a home loan can be both exciting and daunting. A home loan is a noteworthy financial investment that requires careful consideration and meticulous planning. Unfortunately, many make mistakes during application, leading to costly consequences in the future. This is mainly the case with first-time homebuyers. Here are a few common pitfalls to avoid when applying for a home loan to ensure a smoother and successful application experience. Neglecting the credit score One’s credit score is a vital factor in securing a home loan. Failing to check and improve this score beforehand is a mistake. Lenders heavily rely on this metric to assess the borrower’s creditworthiness. Individuals should take the time to review their credit reports, rectify inaccuracies, and work on boosting their scores before initiating the application process. Overlooking pre-approval Getting pre-approved gives a clear picture of the loan amount one qualifies for and reassures sellers that the buyer is serious and financially capable. By bypassing this step, applicants may find themselves in a weaker negotiating position or even risk losing out on their dream home to a more prepared buyer. Ignoring the importance of a down payment While many loan programs have low down payments, experts recommend paying a significant sum upfront.

Today, digital transactions have become the norm. This has made safeguarding one’s financial information all the more important. Sadly, credit card fraud remains a prevalent concern, and numerous victims are falling victim to the evolvingly cunning tactics employed by cybercriminals. One way individuals can safeguard themselves from fraudulent activities is by avoiding some credit card mistakes that leave them susceptible. Avoiding these mistakes can significantly bolster their defenses against potential threats. Neglecting strong password Most individuals prefer using easy-to-use and easy-to-remember passwords to offer them easy access. However, easily guessable passwords such as birthdays and phrases can make things easier for cybercriminals. It is advisable to opt for complex passwords comprising a mixture of upper and lowercase letters, numerals, and special characters to avoid granting them unauthorized access. Regularly changing passwords and employing a password manager can further fortify online security. Disregarding secure websites for transactions Another grave mistake credit card users make that makes them susceptible to fraud is entering their details on unsecured websites. This is one place where cybercriminals exploit vulnerable sites to harvest sensitive data. To mitigate this risk, individuals should only transact on secure websites. Checking for “https://” in the URL and looking for a padlock icon in the address bar are some telltale signs of a secure connection.