Monday 11th of December 2017 12:24:55 AM

  • Expenses, Interests and Costs, Oh my!

    Wednesday 05th of December 2012 11:56:51 AM

    Since we were on the subject of deductions in the last blog I thought I would give you some other incredible tax deductions that most of us probably don’t realize we can deduct.  The following are a few ingenious deductions:

    Student Loan Interests: If you qualify for this deduction you can claim up to $2500 per year.  The IRS feels that if you have to pay back your student loans and you are being charged interest then you should receive some kind of break.  There are a few reasons why you wouldn’t be able to claim it. For instance, if you make too much money or someone else can claim you as a dependent then unfortunately you can’t claim this deduction.

    Home Office Expenses: Although permissible, claiming this one is a huge red flag for the IRS.  You must be very careful when compiling your list of deductions for your home office.  Be prepared for a possible audit.  But if you choose to go ahead with this then you can claim the following deductions; mortgage taxes, repairs, depreciation, utilities and insurance for your home office.

    Commuting Costs:  Although you can claim some commuting costs you can claim your every day back and forth to and from work.  This is only applicable if you are a part of certain commuting programs like TransitChek. You can then claim your parking costs or public transportation costs.

    Medical Expenses: If your medical expenses are greater than 7.5% of your adjusted gross income (AGI) then yes you may claim the deduction.  You can also throw in the travel to and from medical treatments as an additional deduction.

    Moving Expenses:  If you move to another town for the purpose of a new job, the IRS will allow you to claim a portion of your moving expenses as a deduction.  The IRS will accept the following as acceptable moving expenses; shipping and packing costs, storage fees, hotel fees, travel expenses plus gas (up to $0.23 per mile),and disconnection fees of certain utilities.

    Animal Expenses: If you have a service animal and it costs more than 7.5% of your AGI to maintain this animal then yes you can deduct.  Another loophole on this one is let’s say Rover is the only security system you have on that junkyard of yours then you may claim a portion of his maintenance.

    Tax Preparation:  Here’s an incentive to filing your taxes. You can actually claim all your preparation fees and costs! The IRS wants you to feel more comfortable in filing your taxes by giving an extra deduction. Since we have to anyway let us all take advantage of this one.

    If you have more questions about this topic you can find more information on the IRS website.

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