Meghan Belnap 3m 521
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
When it comes to paying your taxes, you’ll want to do everything possible to reduce what you have to pay the government so that you’ll be able to hold onto more of your hard-earned money. Tax deductions can help lower your tax amounts, and you may qualify for more deductions than you realize. By taking advantage of these often-overlooked tax deductions, you may significantly lower what you owe in taxes.
Running your own business can be a costly endeavor, but you can make things easier on yourself financially if you deduct as many business-related expenses from your taxes as possible. Your furniture, computer and other office equipment that you use regularly and exclusively for your business can usually be deducted. Your business insurance as well as the cost of any office rental space that you use can also be applied. You may even qualify for a deduction if you use your car regularly for business.
If you pay pre-taxable money into a health savings account (HSA) because you have an insurance plan with a high deductible, you can qualify for a tax deduction. This only applies to your own money that you’ve contributed, and any employer contributions toward this account can’t be deducted from your taxes. An accounting firm in your area like Berdon LLP can help you determine if all your HSA funds are tax-deductible.
Many people are surprised to learn that their gambling losses can possibly be counted as tax deductions. To qualify for this deduction, your losses must not total more than the earnings from the gambling winnings that you’re required to report on your taxes. It’s important that you keep detailed records of all your winnings and losses so that you can record your accurate itemized deductions on Form 1040 under Schedule A.
If you foster a dog, a cat or another pet that’s waiting to be adopted, you might lower your taxes by including this deduction on your tax form. The costs of food, veterinary care and even obedience training may count toward this deduction. It’s important that you save all receipts that are related to the care of the animal so that you’ll be able to prove these expenses to the IRS.
One of the best ways to keep what you owe the government to a minimum is by learning about and applying all your eligible tax deductions to your taxes. Even if you don’t think that a certain expense can be counted as a deduction, it’s still a good idea to learn whether this expense can help cut your tax costs.
About the Author
Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being outdoors and researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.