Giving your money to the government hurts, so keep as much as possible! The more deductions you can legally claim, the more of your income will stay in your pocket. Even if you’re a tax whiz, double-check to make sure that you have claimed everything possible. Here are some of the best places to squeeze in some more deductions.
Job Related Expenses
If you’ve spent any money on your professional development, such as continuing education, additional certifications, professional workshops, and other things, there should be a good chunk of change that you can write-off.
Travel expenses for work can rack up quick. Even if expenses seem small, they will add up over time. Make sure that mileage is related specifically to work-related travel and client calls. The max allowable rate is 55 cents per mile.
The home-office is a treasure chest of tax deductions. Whether its for the rent you pay or the equipment you use or the degeneration of your home computer, there are plenty of ways to write off some of the money you spend on your home-office. Again, exclusive use is important to legitimize your deduction.
–Job Search Expenses
Printing resumes and business cards are all part of the job hunt, so try to find the value in your unemployment and write off what you can.
–Subscriptions to Journals
If you have any regular subscriptions to professional journals, these expenses can be written off. Much like professional development, reading journals will offer improvements to your income.
–Tools and Supplies
The most straightforward of all deductions, for craftsmen especially, are the cost of tools and supplies. These take up a hefty chunk of income, so keep track for big write-offs.
Health and Hobby
If your employer requires you to get regular health checks, these are job-related expenses. This is a great way to save money on your regular physicals, but also flu shots and other required vaccinations like TB. These must not be covered in your health plan.
One of the coolest tax write-offs is for hobby expenses. You can’t write off more than your income, but if you’ve got outside interests, tap them for some extra savings.
Recently, big banks have been writing off their legal fees for billions in savings. You can do the same, as long as the activity that has generated the legal fee is a result of producing taxable income. Real-estate is one example.
–Safe-Deposit box fees
If you use a safety-deposit box at the bank to store your investment-related documents, you can write off the expenses as a deduction.
If you have a small business or a complicated income situation, your tax preparation fees can become a pretty big bill. Make sure you keep tabs on it and write it off.