Tax Deductions You’re Probably Overlooking
A recent report states that many of us actually aren’t taking all of the deductions we’re entitled to. We usually miss out on itemized deductions because we either don’t know about them or we get freaked out, thinking that if we take too many, we’re looking for IRS trouble. Well the experts are saying that if you have legitimate deductions, you should be taking every single one of them, without fretting.
This that we often miss are:
Non-cash charitable donations. If you take a bike or a clothing to D.I. or Idaho Youth Ranch, those items have value. You should keep track of those items and ask for a receipt from the charity so you have proof of the donations. (Note – I’m NOT a tax expert but we always seem get the most out of our charitable donations when we give to an Idaho charity. This is because you can also get a state tax credit. Consult your tax advisor.)
Other things that are often missed are medical bills, (depending on the price of the bills relative to your income) home offices and work expenses that your company doesn’t reimburse and daycare expenses. In some cases, you can even write off summer camp. Sometimes, your accounting fees can even be a deduction.
The bottom line: You don’t know if you don’t ask. Professional tax advisors aren’t trying to help you cheat the system, they’re trying to get you as much of your money as possible by helping you identify legitimate write-offs. If you think an expense is deductible, it just might be. Consult your tax advisor.