I need more Tax Deductions

taxes

So as we wind down the year and look at our books, some of us may be thinking . . . “I NEED more Tax Deductions!”

So let’s take a look at some ideas.

Pre-Pay Stuff you are going to pay anyway:  So in this case, is your MAREI Membership up for renewal in the next month or two?  Pay it early.  Take a look at the calendar of events and see if there is anything coming up that you might want to pay for before December 31st.  How about other memberships or online marketing tools or even the newspaper.  For example, MAREI uses Constant Contact and we prepay it for 1 year and because we do they give us a discount.

Bonus Depreciation:  Some of those items we purchase from computers to trucks in our business, just might be able to be written off all in one year rather than over a several year time span.  Rules change annually, so check with your tax preparer.

Self Employed Social Security Taxes:  Do you pay your own self-employment taxes like social security and medicare.  You can deduct a portion.

Out of Pocket Charitable Deductions:  do you donate cash or items to a charity, be sure to save the receipts if it’s more than $250.  So next time you write a check for $300 to Harvesters or Toy’s for Tots at the MAREI fund raiser, write it directly to the charity so they will send you a receipt.

Student Loan Interest:  Do you pay the student loan debt for your child, be sure to claim the interest if you paid it.

Job-Hunting Costs:  Hey you might be out looking for a job and those costs associated with finding that job is deductible, even mileage from driving too and from.

Military Reservists’ Travel Expenses:  Weekend Warriors who travel to and from can claim their travel costs.

Medicare Premiums for the Self Employed:  If you run your own business, the premiums you pay for Medicare Part and supplemental coverage are deductible as are regular insurance premiums for those not on medicare.

Child Care Credit:  This takes your tax bill down dollar for dollar.  So if you pay for day care, you can get a credit for a percentage of the bill.

State Tax Bills:  Did you pay state taxes last year?  They are an expense on your federal returns this year.

Refinancing Points:  When you buy a house and pay points, you get to deduct them.  However if you refinance, you can deduct them over the life of the loan.

Jury Duty Pay Paid to the Employer:  Did you serve on Jury Duty and still get paid by your employer?  Did they further have you turn over the paltry jury duty pay in exchange?  You can deduct what you turn over to your employer.

American Opportunity Credit:  Have Kids in college, ask your tax preparer if you can use this credit based on what you spent on college expenses.  If you or your spouse is in college or brushing up on job skills, there may be a credit for you too.

Business Travel Expenses:  We always remember the hotel and the airfare, but don’t forget taxis, baggage fees, or other add on travel fees.

Gambling Losses – if you had Gambling Wins:  You can deduct losses to offset the wins.

 

Know of any we missed, please comment