What Can I Deduct On My Taxes For Maximum Benefit?September 8, 2019
What can I deduct on my taxes is a question I am often asked as a tax accountant. In the 20 years I have been preparing tax returns for individuals and businesses I have tried to answer this question numerous times. Following is a list of deductions that in my opinion satisfy the widest range of taxpayers.
Did you change jobs last year? If you satisfy certain tests you are able to deduct the expenses relating to the move. These deductions include storage of personal house hold items, house hunting, transportation and lodging expenses.
Did you try your hand at self employment last year? Success or failure does not govern the deductibility of many items. Cell phone, computer expense, wages to children and spouse, internet costs, and home office are only the tip of the iceberg for self employed individuals. Consult with your tax adviser to ensure you structure your personal situation to maximize these deductions.
Worthless debts arising from loans to friends and family are deductible in the year they become worthless. Have you helped your son or daughter and you know they will never be able to repay you? Did you help someone out of a jam and even though they promise to repay you you know they never will? Consult with your tax adviser about this deduction and you will not be sorry.
A little known deduction is miles driven to and from doctor and hospital visits. Also miles driven for a charity such as a church are deductible. Consult your tax adviser for the rates as they change each year but start keeping track of them now so you will not miss out at year end.
If you are a teacher you are entitled to deduct expenses you incur in the line of your employment. There are limits that fluctuate from year to year so consult you tax adviser and start keeping track of theses expenses now.
If you have children you are most likely aware of the highly touted child credit. But are you aware of the “Additional child tax credit?” I have amended returns for clients because they or their tax adviser passed this one up. While a credit may not seem like a deduction credits are much better and more painful when skipped over.
Did you know you can deduct expenses relating to an S-Corporation or Partnership that you materially participate in? You are allowed the same deductions as other self employed individuals and you can take these deductions on Schedule E. Be sure to let your tax preparer know if you have expenses that have not been reimbursed by the S-Corporation or Partnership.
Even though you may not be self employed in any way shape or form you are still employed in some capacity. Expenses incurred that are unreimbursed by your employer are deductible to you if they are ordinary and necessary for your employment. Consult with your tax advisor and start documenting these expenses and make sure you are taking all that are available.
What can I deduct on my taxes has been asked by every taxpayer since 1913. If you have found the answer to this question in the foregoing paragraphs then I am glad. However, if not or you have other tax related questions please feel free to contact me. If you follow the links at the bottom of this page to my web site you will find my email address as well as a lot of other information. Feel free to email me and either I or a member of my staff will respond to your question.