Some of the Most Overlooked Tax Deductions
During the tax season, most business people prepare their tax receipts for their tax write-offs. For businesses that use an accounting software program or someone who is good at record keeping, it is faster and more convenient. Mostly, business people dont even know which expenses make good tax deductions. You are likely to face a higher tax bill or a smaller tax refund if you dont understand the deductible expenses. The article herein discusses some of the overlooked tax deductions you should not miss.
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. However, if you are in a partnership with your spouse, it is okay to fill this deduction. Children expenses are also overlooked especially by business owners who work from home. In case you pay someone to look after your children so that you can work, this tax is still deductible. You dont have to be worried if the person looking after your children charges for transportation of your children because you can claim transportation expenses.
For business people who operate from home, you will be required to fill Your Home Office tax deduction, which is calculated by the space used to house your office. This tax deduction is calculated by considering the value of your mortgage or rent, insurance, and electricity. It is also important to note that smartphones and tablets deductions have been overlooked in the past. Ensure that you use these devices for business purposes only to be eligible for this tax deduction.
Moreover, monthly business bills are overlooked. Most businesses depend on elements such as the internet to operate. Also, be careful to separate business expenses from personal expenses if you have a home office. 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.
The other tax deduction you should be mindful about especially if you are continuing education is the tax credit. Individuals who are enrolled in a college or university may also claim tuition expenses. It is worthy to note that this tax deduction also applies to teachers who buy classroom items out of their pocket. Lastly, there is 20% pass-through deduction which allows taxpayers who earn their income through business or trade. Ensure that you understand what this new tax deduction entails by seeking assistance from a reputable accountant.