Do you know that millions of people overpay their taxes every year because they overlook important tax deductions or credits? We would not let our clients do that because our team is made up of bookkeepers and Certified Public Accountants. Our CPA’s have in-depth knowledge about the tax code (which by the way is more than 70,000 pages long).
Cutting your tax bill down should be you or your accountant’s top priority. If you’re still in the middle of doing your taxes or having them done for you, here are some of the tax credits and deductions that are overlooked every year:
TRAVEL EXPENSES / BAGGAGE FEES – If you own your own business and travel, then you know you can deduct work-related travel costs. Did you know that one of those costs is airline baggage fees? Millions of people don’t know this and miss out on this tax deduction.
MORTGAGE REFINANCE – I have a client who refinanced her house this year, but when she brought me her tax documentation, the new loan information wasn’t included. I had remembered our discussions about refinancing and informed her that when you refinance you get to deduct the points on the new loan. The only catch is that you can only deduct the portion of points for that year, so that means 1/15th of a 15-year loan.
HOME PURCHASE – If you bought a new home last year, then you get to deduct all of the points paid on your new mortgage.
JURY PAY – This is one many employees don’t know about. When an employee is called to jury duty, the law requires employers to pay an employee’s full salary during their service. Some companies make the employee turn jury pay back over to the company. Companies then get taxed on that income. The IRS however, allows employees to deduct the amount given to an employer. Confusing huh?
CHARITABLE DONATIONS – We’ve all dropped a dollar into a red kettle, but did you know that buying food to make a donated dish is also tax deductible? If you donate clothes, furniture, and even your old car to a charity, the IRS says you can deduct the value of those donated items. The rule here though is, you have to have a receipt for the donation. If you don’t and you get
audited, then the deduction won’t count.
HEALTH INSURANCE – If you’re self-employed and not covered by your spouse’s health plan, you may be able to deduct all of your health insurance premiums, as long as you don’t lump it in with itemized deductions. E-mail me if you need more info. Also, if you own your business and you reach the age to qualify for Medicare, you can deduct the premiums.
Welcome to my confusing world of taxes and deductions. I
love this stuff! But if you don’t, then e-mail or call me and I will help you get the most back from the IRS or help you find those deductions that will have you
paying only what you’re supposed to. Remember, March 15th is the deadline to file corporate taxes, so if you’re a business owner, get to it.
Have a great week!
