
Taxes are always a burden regardless of whatever your income is; nobody likes it when the government takes their money. Tax breaks are offered for different things that try and help give people a little back if they need it, but some of these tax breaks actually end up favoring the wealthy. Surprisingly, certain benefits that the wealthy have access to end up providing more for them due to the circumstances of the tax break.
Here are five tax breaks that favor the wealthy.
5. Deduction for alimony
This one seems like some good general knowledge that everyone should be aware of; you can receive a tax break if you are paying alimony. For those unfortunately situated in a divorce where they are the primary income maker yet find themselves paying alimony, a tax break is available no matter what your salary.
4. Deductions for moving expenses
Certain careers require those people to constantly relocate themselves specifically for the job, and those people can get a little tax help because of it. If you are moving, you have the ability to write off a number of things; packing and shipping your belongings, up to 30 days of storage with insurance, the cost of traveling to your new house one time as well as any lodging necessary, and even to disconnect your utilities and have them reconnected at the new place. This is definitely useful and makes moving a little easier.
3. Deduction for gambling losses
This one seems sort of goofy, but it’s no joke, you are allowed to receive a deduction for money lost in gambling compared to the amount you’ve won from gambling in a single year. This applies to everyone and can possibly favor those with a larger income because they will have more to spend on gambling thus creating a larger deduction.
2. Tax-free education reimbursementÂ
For those who have education expenses, you can possibly receive up to $5,250 a year if your employer offers it. This can cover education expenses of any kind and even cover graduate school costs, but is only available through companies that offer “section 127”. Even if this is not offered, people are always allowed to receive tax free reimbursement for education costs in order to uphold the performance at your current job.
1. Dependent care credit
Certain households have both parents always working and they are paying a nanny or babysitting to watch their children through the days. If the children are 13 years old or younger then parents can most likely file for this tax break which helps the wealthy by returning 20% of expenses that are up to $3,000 for one child and $6,000 for two or more. This would give parents a $600 tax break for one child and up to $1,200 available for having two or more kids.
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