When doing your taxes there are certain “little” deductions that are good to be aware of. Many people will disregard the little tax deductions but if you want to be aware of what can be deducted; keep your receipts and know the tax rules or find them out if not. Sometimes the reason people don’t keep their receipts is because they’d rather not think about taxes or are too lazy too. The categories to keep in mind are general reductions, educational expenses, work expenses and home improvements.
General tax reductions begin with the mind set of thinking about each reciept and purchases made and if it falls in any of the tax deductable categories for filing taxes. To begin I will cover some basic tax filing reductions so that you will be taxes less at the end of the year and have a larger return. Claim the amount of people in your family up front to whom you work for so the taxes are directly taken out of you pay on a monthly basis. You can also take out additional federal and State tax from your pay to lessen the amount of tax that you will owe or increase your return at the end of the year. Insurance for homes owned and mortgage insurance if applies can be claimed as tax deductions to reduce income.
Educational expenses can occur for people who buy text books and pay tuition who pay out of pocket. There is a cap for educational expenses which will be outlined on the federal tax preparation forms. If you buy a computer to complete school courses this is likly a tax write off. The category that will apply depends on what criteria the individual meets in age, income and so forth. Expenses related to registration, and lab fees can be used as tax deductable. Keeping your receipts are important for all educational expenses.
Work expenses can be higher than thought if you drive to work or help in funding projects or miscellaneous things for the office. If your expenses are not reimbursed they may be considered tax deductible. There is a certain mileage that may be allowed and you should be familiar with the rules and if you’re driving distance covers criteria to be re-reimbursed for mileage and/ or gas money spent. Out of town trips where you needed to find a hotel to stay at is another expense that is work-related if you weren’t reimbursed.
Home improvements are tax deductible and that includes the old kitchenware or other items that are needed for it to function properly. There are such expenses such as buying a hose and high pressure water sprayer for the driveway that can be a deduction. However, it can get tricky if you are not the home owner. If you rent and are improving the property check and see if the owner or property management will fund the improvement. If not you can use the $7.00 spent on getting a new set of keys for example as an expense. Other expenses such as Pest control and tree trimming services can be tax deductible.
Being aware of what you’re spending and spending it on will help identify the small hidden expenses that can be used as tax deductions and reductions.