Tax deduction is always an interesting topic for the taxpayers. Quite obviously, it has to generate interest for it saves money.
The Internal Revenue Services (IRS) allows a number of deductions on the income tax. Among those, some are very popular, such as – medical insurance, charity, etc., and most taxpayers make their use for saving the tax payments. Only intellects in the accounting and taxes know that there are even more tax deductions available as per the regulations. Common masses, not aware of such regulations, are not able to gain best benefits and may end up paying more taxes.
Here are some of the easily overlooked tax deductions that can help you save more this tax season:
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1. Tax Preparation Fees
The hassles that arrive with the tax season can hurt, but IRS ensures that the expenses that you have to spend for tax filing do not cause any damage. Accounting fees associated with the tax filing, which can include – bookkeeping charges, fees of accountants, CPAs, and financial advisors, auditing charges, etc. offer tax deductions. Depending on the size and complexities of the income, one may have to spend a significant sum of money on the financial service to keep the calculations up with the regulations and timely tax payments. Therefore, keep a track of such expenses and claim the tax deduction.
2. Business Travels
Most readers might be surprised to know that they can claim a tax deduction even for dry cleaning and laundry services during the business travel. Travel expenses between home and business destinations, shipping of baggage, business calls during business trip, meals, lodging, and some more of such expenses can get deductions on taxes. Business travels are inevitable for most businesses and they cause noticeable bite on the pocket. So, find yourself a suitable software application to track your expenses, while on business travel and save more money.
3. Casualty or Theft Loss
Casualty loss or theft loss may never be pleasant news for business. However, if it has struck you then you do have the tax deduction that can compensate for loss somewhat. This tax deduction is little complex with calculations as various factors come into consideration, such as – type of loss (disaster, casualty, or theft), cost of loss as per the fair value price, insurance and reimbursement taken for losses, etc. Considering the fact that accounting fees is tax deductible, you can hire a financial expert to make out these complex calculations for you.
Free Tip: As a way to protect your accounting information against accidental losses, it is recommended to host tax software on the cloud with a reliable provider.
4. Cellphone Expenses
Cellphones must be powering your business pretty well and now they will help in gaining tax deductions as well. The deductions on the cellular phone expenses are applicable only for the business usage. Applying for the deductions for the personally used phone may invite penalty as well. So, be precise in calculating only the business expenses with itemized bills. Other recommendations that experts suggest is opting for a dedicated business phone so that personal dialing does not interfere and deductions are applied.
Even eye glasses and contact lenses, addiction treatment, and lead paint removal are tax deductions under IRS regulations and there are several more of them. The point is that tax deductions available from IRS are immense, but they are often ignored by taxpayers, especially the new taxpayers. Because of such ignorance, one has to pay more than actually applicable taxes. Keeping up with the latest tax regulations, getting an expert for tax preparations, and advanced tax software are some of the easy solutions that can help the tax payers to make most of the tax deductions and save the maximum of their money.