Some of the Most Overlooked Tax Deductions
Most business people pull together receipts for their tax write-offs during the tax season. It is faster if you are a good record keeper or if you use an accounting software program. The knowledge of the expenses that make good tax deductions is not available to every business owner. You are likely to face a higher tax bill or a smaller tax refund if you dont understand the deductible expenses. By reading this article, you will learn some of the little-known tax deductions you may be overlooking.
The wages paid for your children is the first deduction worthy of consideration. It is important to note that you only fill this deduction if you are a sole proprietor and not a corporation. Spouses who are in a partnership are allowed to fill this tax deduction. Children expenses are also overlooked especially by business owners who work from home. Remember that this tax is also deductible even if you pay someone for part of the day to watch your children so you can work. In case the person caring for your child charges for the transportation of your child you may also be eligible to claim transport expenses.
If you are running a business from home, Your Home Office tax deduction will be calculated using the space used to house your office. Factors such as your mortgage or rent, insurance and electricity can be used to calculate your home office insurance. The other tax the is overlooked is the smartphone and tablet expenses. If these devices are used for business purposes, you are eligible for this tax deduction.
Moreover, monthly business bills are overlooked. Most businesses depend on elements such as the internet to operate. You should draw a clear line between the business expenses and personal expenses if you are working from home. Meal and travel expenses is another tax deduction you should not overlook. Before you file a tax return, ensure that you are mindful of expenses such as hotel room costs, airfare costs, telephone expenses as well as temporary internet charges.
If you are continuing your education to learn new ideas and advance in your position, you are may be eligible for a tax credit. Individuals who are enrolled in a college or university may also claim tuition expenses. Similarly, teachers who buy classroom items out of their pocket are also eligible for this tax deduction. Apart from taxpayers who earn their income through business, a 20% pass-through deduction also applies to those who earn income through legal trade. Talk to a qualified accountant to help you understand the details of this review.