Don’t Forget These 10 Expenses to Write Off on Your Taxes
Whether you’re gearing up for the next tax return season or looking over your last return, it’s essential that you are up-to-date on all the write-off expenses for your business taxes. Learn how to get the most out of your taxes with these 10 write-offs.
- Earned Income Tax Credit
This write-off requires you to earn at least one dollar of income and have at least one child that qualifies. There’s a maximum amount and it’s based on your income, but this tax credit has the potential for huge savings for anyone filing separate or joint returns.
- Child Care
If you pay for childcare, it could be a valuable tax write-off. Be sure to have a document proving you’ve paid for actual care, and ask your accountant if your income is too high.
- Income from Self-Employment
A pass-through business of self-employed individuals may be able to deduct 20 percent of their income from personal taxes. If you are part of a partnership, sole proprietorship, LLC or an S-Corporation, find out if you qualify for this income business income deduction.
- Tuition and Student Loan Interest
Your personal tax return can receive deductions from student loan interest or college tuition payments. Parents of dependent children in college can also receive these deductions.
- HSA and IRA Contributions
Whether you contribute to an HSA or a traditional IRA, discover how your personal or business taxes can benefit from these tax deductions. Your deduction will vary based on your level of income and contributions.
- Non-Cash Charitable Giving
Your business can deduct more than just cash donations to charity. Mileage to and from a charitable event, as well as goods donations, like canned goods or used clothing, can also be deducted as an expense.
- Medical Expenses
Keep track of your medical expenses throughout the year. If it’s higher than a certain percentage of your income, you may be able to deduct large medical expenses such as hospital visits or home improvements for medical reasons.
- Value-Based Registration Fees for Your Car
Some states allow you to deduct your car registration fee for your personal and business taxes. Check with your state to see if you can use a flat fee or value-based registration on your itemized deduction.
- Property Tax and Mortgage Points
Discover how you can deduct both mortgage points and property taxes from your returns. If your business also owns the property, you may be able to receive a deduction for your company as well.
- Sales Tax and State Income
Finally, your business taxes can enjoy deductions based on sales tax and state income payments, particularly for larger purchases.