14 Most Overlooked Tax Write-Offs You Don’t Want to Miss

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Gambling losses

Yes, these are deductible, “up to the extent of your winnings, with sufficient documentation,” pointed out Coach Crystal Nickson, a certified financial social work educator. Here are other Oddball Tax Deductions You Won’t Believe Are Real.

Reinvested dividends

If I reinvest my dividends, do I still have to pay taxes? Well, according to Jacob Dayan, Esq., CEO and co-founder of Community Tax, “taxpayers should automatically reinvest their dividends back into their stock or mutual fund. This isn’t technically a tax deduction, but this tip will advise taxpayers on how to save money that they once overpaid in taxes. It isn’t commonly known, but every reinvestment into stock increases a taxpayer’s ‘tax basis’ with either their mutual fund or stock. In exchange, an increase with their tax basis lessens the amount that a taxpayer’s capital gain will be taxed on by a significant amount—if subtracted correctly. This saving goes into effect when it comes time for a shareholder to sell their shares.” It might be one of these Most Important Financial Decisions of Your Life!

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