Author: Terri Pole
October 17, 2017
Don't pay more than you need to in taxes. Here are 6 different tax deduction opportunities that you won't want to miss on your tax return.
1. Student Loan Interest
Even if you don’t itemize you may be entitled to a student loan interest deduction of up to $2,500 per year. As long as you are not claimed as a dependent on your parents’ return, you can take this deduction regardless of who is repaying the loans. (Income limits apply.)
2. Moving Expenses
You might be eligible to deduct reasonable moving expenses even if you don’t itemize. Your new workplace must be at least 50 miles further from your former home than your previous office was. If you did not have a previous workplace, your new job location must be at least 50 miles from your old home. Expenses incurred for meals during your move are not deductible.
3. Actual Sales Tax Paid
Did you know the IRS calculates this amount on your AGI for you? Or you can save the receipts and use the actual total of all sales tax paid. This adds up in a hurry (especially if you like to travel!). Start keeping those receipts!
4. Charitable Donations
All donations to an IRS approved non-profit organization are tax deductible. Keep good records with receipts that document the name of the organization and the amount of your donation.
5. Home Office Deduction for the Self-Employed
You can use the safe harbor method of $5.00/sf up to 300 square feet for a maximum deduction of $1,500.00. This requires no additional record keeping nor affects your basis in your home. Just get the tape measure out!
6. Hire Your Kids!
If you are a business owner who runs payroll, hire your children for a fair wage to do odd jobs at the office. Each of your dependent children can earn up to the standard deduction amount ($6,350 in 2017) before owing any income tax. So while you, the business owner, are required to pay FICA tax on the wages, you are entitled to the wage and tax expense deduction, reducing your net income and possibly shifting that amount from the 39.6% tax bracket to a 0% tax bracket. The net savings is well worth it.
Do you have any questions or feel like you could be saving more money than you are right now on taxes?
Give us a call: (352) 369-1120
About the author: TERRI POLE
She brings with her 32 years of accounting experience in both the public and private sectors. Terri’s private accounting experience was primarily in the construction industry working for general contractors with a specialty in Work in Process. At Lindsay, Crabb and Associates, Terri enjoys the challenges of a varied clientele and takes great pride in her work and her relationships with her clients.