Filing your tax returns is a difficult job to do and if you’re not aware of all the deductions and credits you’re eligible for, you may be losing money. Look into these 3 incredible tax breaks that you surely don't know exist!
1. The starving artist tax break
If you are a performing artist or someone who sketches people at the park, this worldwide pandemic may be just the right time to find out that this tax break exists. This can be great news for you…if you are bankrupt:
The starving artist deduction is here to help you if you fit these specifications:
1. You must have worked for at least two employers and received at least $200 from each one during the year.
2. Your expenses must be more than 10 percent of the income you receive from performances.
3. Your adjusted gross income must be less than $16,000.
If you qualify, you can deduct paints, brushes, dancewear, or anything else you need to be able to perform.
2. The 100th birthday tax break
In New Mexico, providing you have resided in the state for at least six months, are a resident on December 31, and are not listed as a dependent on someone else's taxes, you will become completely exempt from state income taxes. It may not be as exciting as receiving a letter from Queen Elizabeth, as English folks do on their 100th birthday, but it’s a lot more helpful.
3. The exceptional tree tax break
If you live in Hawaii and have a magnificent specimen of a tree in your garden, there is an amazing tax break for which you qualify. The exceptional tree tax break is a strange but perfectly legitimate tax break that still exists and allows you to write off up to $3,000 in qualified costs and expenditure on your tree maintenance.
The state takes into account age, rarity, location, size, aesthetic quality and endemic status to decide whether it’s exceptional and worthy of preservation. If you fill in all of the above, you get the write-off.