 | | A self-employed person, you may be able to deduct a portion of the entertainment expenses you |
| | incurred in the course of doing business.
|
| | The cost of advertising or marketing associated with your business may be deductible.
|
| | Uncollectible debts incurred in the course of your business activities may be deducted.
|
| | Gifts to clients, business associates or others related to your work may be deductible.
|
| | A portion of the cost of meals for yourself or others that were business-related may be deducted.
|
| | If you are self-employed, many of your work-related expenses may be deductible.
|
| | The cost of using a vehicle for business may be deductible either at a standard per-mile rate or |
| | according to actual operating expenses.
|
| | If your business was damaged by fire, wind, or some other catastrophic event, you may be able to |
| | deduct a portion of the losses.
|
| | The cost of merchandise that you sell as a part of your business may be deductible.
|
| | Did you make your office or a company-owned vehicle more accessible to the disabled or |
| | handicapped? Those expenses may qualify for a deduction.
|
| | Any real or personal property may be depreciated over time and a portion of its value deducted |
| | each year from your taxes.
|
| | If you paid education-related expenses for your employees, you may be able to deduct those costs.
|
| | Benefits you provided as an employer to your workers may be deductible as a business expense.
|
| | If you regularly conduct business out of your home, you may qualify to deduct expenses related to |
| | the portion of the home used for business.
|
| | Premiums you paid for certain types of insurance may be deductible as a business expense.
|
| | If you regularly conduct business out of your home, you may qualify to deduct expenses related to |
| | the portion of the home used for business.
|
| | Premiums you paid for certain types of insurance may be deductible as a business expense.
|
| | Just as with your home, you can deduct the interest you paid on the mortgage for the office or |
| | building that houses your business.
|
| | Most types of interest paid in relation to operating your business qualify for a tax deduction.
|
| | The cost of legal or professional services needed to operate your business may be deductible.
|
| | The portion you as an employer contribute for pension or profit sharing for your employees may be |
| | deductible.
|
| | If you rented or leased property used in connection with your business, you may be able to deduct |
| | those expenses.
|
| | Did you pay for repairs or maintenance on your business property? You may be able to deduct |
| | those costs.
|
| | You may be able to deduct the cost of returns, rebates, or allowances from the sales price.
|
| | Certain types of business property ? such as a car, computer, or office furniture ? may qualify for a |
| | form of accelerated depreciation, known as a Section 179 deduction.
|
| | If your business is less than two years old, the government allows you to deduct the various |
| | incidental costs associated with beginning a business.
|
| | You may be able to deduct the cost of supplies used in the course of conducting your business.
|
| | Taxes and fees paid to state and local agencies in connection with the operation of your business |
| | may be deductible.
|
| | Was your business victimized by theft? Any losses not covered by insurance may qualify as a |
| | deduction.
|
| | Business-related travel for you or your employees may be deductible.
|
| | You do have to have electricity to run your business, right? Utility and telephone expenses are |
| | generally deductible.
|
| | Any wages you pay yourself (if your company is separately incorporated) and your employees can |
| | generally be deducted as a business expense.
|
| | Other deductions for the self-employed, such as those for education expenses and contributions to |
| | special retirement plans.
|
| | The cost of education needed to maintain your current job skills may be deductible.
|
| | Do you have a disability that limits your ability to work? Expenses that help you to overcome those |
| | limitations may be deductible.
|
| | As a self-employed person, you can open a Keogh retirement plan for yourself and your spouse and |
| | deduct the contributions.
|
| | If you decide to move your operations for business reasons, you may be able to deduct the costs.
|
| | Portions of your health insurance costs are deductible as a self-employed person.
|
| | If you are self-employed, you can deduct half the self-employment tax you paid during the year.
|
| | Do you have a Simplified Employment Plan at your office? It is considered a qualified retirement plan |
| | and contributions up to a certain amount can be deducted.
|
| | Contributions on behalf of your employees made to a Savings Incentives Match Plan for Employees |
| | (SIMPLE) may be deductible as a business expense.
|
| | As an employee, you are allowed to deduct any expenses that are not reimbursed by your |
| | employer. These can include business-related gifts, meals, and even liability insurance.
|
| | If you paid for meals or entertained people in the past year for business-related reasons.
|
| | If you made any direct or indirect gifts to individuals in the past year for business-related reasons.
|
| | Tax laws allow you to deduct half of your meals and entertainment expenses if they are business- |
| | related. If you paid for any business-related meals and have the receipts.
|
| | For Leased Vehicles -You may deduct the portion of your leased car's payments that are directly |
| | related to conducting your business. You will have to pro-rate the costs, since commuting and
personal use are not deductible.
|
| | For Owned Vehicles - If you use your car in your work, you may deduct the percentage of expenses |
| | you incurred that are business-related. The expenses would include car payments, insurance,
depreciation, gas, and repairs; if you were using actual expenses. If you keep a written and
adequate mileage log, you may claim mileage..
|
| | If you purchased a cellular phone for business reasons, you can deduct the costs that were directly |
| | related to conducting your business.
|
| | You can deduct the costs of a personal computer that were directly related to your business. Be |
| | careful here: The IRS considers computer-related deductions a red flag for audit purposes.
|
| | Have you set aside a room in your house to conduct business, meet clients and/or to handle |
| | administrative and other business-related work? If so, you may be able to deduct the expenses
associated with maintaining your office and any business-related expenses associated with it.
|
| | If you are a member of a labor union, you may deduct the dues you pay each pay period.
|
| | If you purchased liability or malpractice insurance for business-related reasons, you can deduct |
| | those expenses.
|
| | If you worked as a performing artist last year for at least two employers, any expenses you incurred |
| | may be deductible.
|
| | A portion of the expenses you paid to professional organizations or to subscribe to business-related |
| | publications may be deductible.
|
| | Any tools you purchased in the past year for business purposes may be deducted.
|
| | You may be able to deduct the cost of business travel for expenses not reimbursed by your |
| | employer.
|
| | If your employer requires you to purchase uniforms or specific types of clothing as a condition of |
| | employment, you may be able to deduct those expenses.
|
| | Expenses related to your employment or search for employment may be deductible.
|
| | The cost of education required by your employer or the law to keep your current job may be tax |
| | deductible.
|
| | If you are disabled or otherwise impaired and had expenses that enabled you to work, you may be |
| | able to deduct those expenses.
|
| | You spent money in the past year searching for employment.
|
| | If you moved in the past year to go to a new job and were not reimbursed by your employer, you |
| | may be able to deduct those expenses.
|
| | If you live in California, New Jersey, New York, or the state of Washington, you may be able to |
| | deduct payments to certain state-administered benefit funds.
|
| | If you had, expenses related to medical care, paid state or local taxes or donated to qualified |
| | charities.
|
| | If you think your medical expenses may have exceeded 7.5% of your adjusted gross income last |
| | year.
|
| | Cash contributions to qualified charities may be deductible from your taxes.
|
| | Any non-cash contributions may be deductible.
|
| | If your medical bills were unusually high, you may qualify to deduct not only those expenses but |
| | also any premiums you paid for health insurance.
|
| | Payments for lifetime care made to retirement homes or to facilities for the mentally or physically |
| | impaired may be deductible.
|
| | A portion of the premiums you pay for long-term care insurance may be deductible as medical |
| | expenses.
|
| | Medical Savings Accounts allow you to save for large medical expenses while deducting your |
| | contributions in the interim.
|
| | The expenses incurred in traveling to and from a hospital, doctor's office or other medical provider |
| | can be added to your total medical deductions.
|
| | The money you spent on medicine and other prescription drugs can be added to your total medical |
| | expenses to determine your eligibility for a deduction.
|
| | If you paid for medical care in a nursing home for yourself or a dependent, a portion of the expenses |
| | may be deductible.
|
| | If you hosted a student in your home, not as part of an exchange with your own child, you may be |
| | able to deduct $50 for each month the student lived with you.
|
| | If you inherited taxable income from an estate, you may deduct estate taxes paid on that income as |
| | part of the settlement.
|
| | Foreign taxes that you pay as a U.S. citizen may either be deducted as an itemized deduction or |
| | claimed as a credit against your U.S. tax.
|
| | Personal property taxes that are based on the value of the property and are assessed yearly may |
| | be deductible.
|
| | Taxes paid on your home or other real property may be deductible.
|
| | You may be able to deduct state and local income taxes. This includes income withheld from your |
| | pay as well as estimated payments on a pay-as-you-go basis.
|
| | Did you incur any expenses as a volunteer to a qualified charitable organization for which you were |
| | not reimbursed? Those expenses may be deductible.
|
| | If you had other deductions, such as interest you paid on your home mortgage, a deductible IRA or |
| | gambling losses to the extent of your winnings.
|
| | Alimony payments ordered, as part of a legally binding separation or a divorce settlement may be |
| | deductible.
|
| | If you were owed money that could not be collected, that is considered a bad debt and may be |
| | deducted.
|
| | A portion of any losses caused by a catastrophic event, such as a hurricane or earthquake, may be |
| | deductible.
|
| | Gambling losses may be deductible as a reduction of any income that you report from winnings.
|
| | Mortgage Interest - It is the single biggest tax deduction for most people. You can generally deduct |
| | the interest you pay on your principal home and a vacation home.
|
| | If you lived abroad and move to the United States to retire or following the death of your spouse, |
| | you may qualify to deduct your moving and travel expenses.
|
| | If you bought a home last year, you may have paid ?points? to the lender. Each point, which equals |
| | 1 percent of the loan value, may be deductible in the year you paid it.
|
| | If you pay the cost of mortgage ?points? over the life of the loan ? as you must under some |
| | circumstances ? you may be able to deduct the portion that you pay each year.
|
| | You may be able to deduct the points paid on the purchase of your home even if the seller paid the |
| | points.
|
| | If you had to return income that was paid to you in advance from a previous year, you can deduct |
| | the repayment.
|
| | If you paid a for tax advice, software or preparation services, those expenses can be included as |
| | part of your miscellaneous deductions.
|
| | If someone stole property or money from you, you may be able to deduct a portion of the loss that |
| | was not covered by any insurance claim settlement.
|
| | You may qualify to deduct some of the interest paid on student loans.
|
| | You may qualify to deduct expenses related to your investments, such as investment advice, safe- |
| | deposit box fees, or early withdrawal penalties.
|
| | The costs you incurred for reinvesting dividend income may be included as miscellaneous deductions.
|
| | If you borrowed money to purchase investments, you may be able to deduct the cost of interest |
| | payments on that debt.
|
| | If you paid a financial planner or other advisors for investment advice, the fees may be included with |
| | your miscellaneous deductions.
|
| | Fees you pay for investment management or custodial services may qualify as miscellaneous |
| | deductions.
|
| | The cost of replacing lost or stolen securities may qualify as a miscellaneous deduction.
|
| | Did you employ someone to handle clerical work related to your investments? If so, the cost of rent, |
| | wages, and other expenses may be deductible.
|
| | If you leased a safety deposit box to store your investment records, the fees may qualify as a |
| | miscellaneous deduction.
|
| | Did you incur an early withdrawal penalty on your savings? The amount of the penalty may be tax- |
| | deductible.
|
| | A Tax credit is a dollar-for-dollar reduction in the tax you owe. Credits include those for adoption |
| | expenses and special credits for the elderly and the handicapped.
|
| | If you adopted a child during the year, you may be able to take the amount of related expenses as |
| | a tax credit.
|
| | If you incurred child- or dependent-care expenses in order to work, you may qualify for a tax credit.
|
| | The Elderly or Disabled tax credit is offered to those taxpayers who aren't covered by Social Security |
| | and spend their later years living off past savings and investments.
|
| | You may be able to take a credit on your U.S. returns for taxes you paid to a foreign government. |
| | |
Deductions are expenses that you have
incurred that the government allows you to
reduce your overall tax bill. It is a deduction
because it is based on your marginal tax rate.
Therefore, if you are in the 28% tax bracket that
means for every $1 you spent on that specific
item you can reduce your tax bill by 28 cents.
