When you think about it, getting a big tax refund every year is really just a short-term gain. More than likely, it means you’ve overpaid your taxes and forgot about deductions that could give you more money to spend on other life necessities. Uncle Sam wants a piece of everyone’s pie, and that’s fine. But he’s not entitled to all of it.
Some income is exempt from taxation — probably more than you realize. Here are 15 ways you can increase your earning potential and put more money in your wallet by simply utilizing tax deductions.
1. Use Airbnb
We all know about the monetary benefits of rental properties and second homes, and some of that attributed income is tax-free — if you’re only renting for 14 days or fewer annually. With Airbnb’s growing popularity, there’s no excuse not to cash in on this potential.
Now, it’s easier than ever to rent out your entire home or just a single room to paying customers. Of course, you’d have to claim income if you grew your rentals into a six-figure business, such as this guy. But for most of us, a casual rental stream would work just fine. Is there a sporting event in your home town that could enable you to rent out a room for a night? Cash in on those tax savings and extra income.
Next: This type of tax-free income might seem a bit morbid.