Every year, hard-working Americans are paying too much tax, simply because they are unaware of various tax deductions that they could claim. Whilst many might think that it’s only big multinationals that can reduce their tax bill with creative book-keeping and little-known tax loopholes, many honest individuals can rightly save themselves a good deal of money, simply by knowing a bit more about what can and can’t be claimed.
There are plenty of interesting ways that you might find a tax preparer can help save you money - this article will highlight just a few of the many money-saving opportunities available; however, for a better chance of cutting back on the amount of tax you pay, the best solution is to deal with a qualified accountant or tax preparer.
You do not necessarily need to be earning money to actually save on your taxes. For example, costs related to any travel or mailing that is paid out in relation to job-hunting could potentially be deducted. It’s important to be aware that such expenses can only be considered if such a search is connected with employment in the same line of work. Furthermore, if you’ve not been in employment before, or have been out of work for too long before trying to find a new position, then such savings might not be available.
Supposing you’ve decided to change jobs and need to relocate in order to do so then, so long as the distance between the home you are moving from and the job you are moving to is 50 miles or over then you could potentially include this in your taxes.
It is worth noting that certain restrictions might apply, including the requirement that, during the initial year following the move, employees must be in full time employment for a minimum of 39 weeks.
For animal-lovers, it is also worth knowing that shipping costs could be seen as deductible for tax purposes, as long as any relocation is for reasons related to employment, and over a distance of at least 50 miles.
Improvements in relation to technology and communications has made it easier than ever before for people to work from home, and has fuelled growth for an expanding freelance market. People who only work from home from time-to-time are unlikely to be able to benefit from such deductions, due to the strict rules that apply – essentially, the area of your home that you wish to allocate for work purposes must be used on a regular basis, and should be used exclusively for business purposes.
Due to the restrictive nature of these requirements, many people won’t be willing to sacrifice such an area of their living space – theoretically, such space should never be used for family purposes; however, for those who do have a dedicated part of their home or apartment reserved exclusively for work, then there are potentially decent deductions to be had.
If there is any specific clothing that you need to buy to wear to work, other than uniforms, then there is a chance that you could claim some money back.
This particular allowance does not definitely enable people to make savings for any and all clothing that they purchase, even if that clothing is bought primarily for business purposes. Instead, the deductions are reserved only for clothing that is to be worn exclusively in the workplace.
For a better idea as to whether or not an item of clothing can be included on your taxes simply think to yourself whether or not it is something that could reasonably be worn outside of work (even if you do not plan to do this).
There are many miscellaneous itemized deductions that can be included as part of any tax claim, including certain expenses for dental and medical care. The first thing to be aware of is that any costs that an insurance company or other source reimbursed. Essentially, you need to have covered the costs, and they need to have been paid within the previous tax year. There are certain limitations in relation to how much can be reclaimed, as well as which medical and dental procedures are subject to possible tax deductions.
Flynn Financial Group Inc