Tax deductions are life savers for people wishing to lower their tax bill, but what happens if you forget to add one when filing your taxes? Even worse, what if there is a tax deduction that you qualify for but didn’t know applied? QualiTax has a team of qualified tax consultants who are prepared to answer any questions you have about filing your taxes. We have a variety of tax services to fit your needs. From tax planning to small business accounting, we’ve got you covered! If you’re looking to save more on your tax bill and want to know what deductions you qualify for, contact QualiTax to set up a consultation with one of our tax specialists and start saving! In today’s blog, we will talk about some tax deductions that get overlooked and could actually save you money!
This is probably the most well-known tax deduction. Most people know that if they donate items to thrift stores or give money to a charity of their choice, they can deduct that from their tax bill. But, what most people don’t know is that you can also deduct certain out-of-pocket expenses. For example, if your child’s school is having a bake sale for a charity and you decide to make cupcakes or brownies, you can deduct the cost of the ingredients. If this is something you decide to do, make sure to save the receipt as proof in case you get audited.
Tax Preparation Fees
Many of the deductions you can make on your taxes depend on your adjusted gross income (AGI). Fees you pay for tax services or software (if you happen to do your taxes yourself) can be deduced from your taxes as long as they total more than two percent of your AGI. Need help preparing for your taxes? QualiTax is happy to help! Our Annapolis CPAs are highly trained to help you with anything from tax preparation, to small business accounting. If you need help preparing your taxes or want to know if something qualifies as a tax deduction, contact QualiTax to set up a consultation.
Unusual Business Expenses
Spending money on your business can actually benefit you when it comes to filing your taxes. Say you have to buy a laptop or a certain software for your business, you could get that deducted from your taxes. If you have a good explanation as to why you needed the item or items for legitimate business reasons, there is a good chance you will be able to deduct the cost. Need help organizing your business expenses or deciding what items qualify for deduction? QualiTax has highly trained tax consultants who are happy to schedule a consultation and assist you in your tax filing decisions. For more information on our tax services or to set up an appointment with one of our tax advisors, contact QualiTax today!
Moving Expenses for First Job
Unfortunately, any job-hunting expenses for your first job can’t be deducted during tax filing. However, if you have to move because of your first job, your moving expenses are eligible for tax deduction! You don’t even have to itemize! If you moved more than 50 miles, you can deduct 23 cents per mile for transporting yourself and your household goods to a new place.
Savings for Teachers
If you’re a teacher, chances are you have to dip into your own pocket to pay for something you need in the classroom. Lucky for you, if you are a qualified teacher for grades K-12, you are allowed to deduct up to $230 for expenses. This deduction will come out of your income so you don’t have to worry about itemizing, saving you both time and money!
Medical expenses are known for causing stress. However, you can have some relief knowing you can deduct expenses for you, your dependents, and your spouse if the total amount of your medical expenses is more than 10 percent of your AGI. This is also the case if you or your spouse is over the age of 65. In that case, your expenses have to equal more than 7.5 percent of your AGI. Knowing what you can and can’t deduct from your taxes can be tricky. Luckily, QualiTax is here to help! Our qualified tax consultants can assist you with any of the tax services we offer as well as deciding what you can deduct from your taxes. For more information check out our website or contact QualiTax today to schedule a consultation.