Tax Deductions That Are Overlooked
It is important to note that as a business person, you should prepare tax receipts for tax write-offs during the tax season. It is faster if you are a good record keeper or if you use an accounting software program. Mostly, business people dont even know which expenses make good tax deductions. You are likely to face a higher tax bill or a smaller tax refund if you dont understand the deductible expenses. The article herein discusses some of the overlooked tax deductions you should not miss.
The wages paid for your children is the first deduction worthy of consideration. It is important to note that you only fill this deduction if you are a sole proprietor and not a corporation. Spouses who are in a partnership are allowed to fill this tax deduction. The other deduction that is overlooked is the children expenses. Note that children expenses are deductible whether you look after the children by yourself or you pay someone to look after them. You may be eligible to claim transport expenses if the person looking after your children charges for transport of your children.
The other essential factor you should not overlook is Your Home Office. Apart from the value of your mortgage, this tax deduction is also subject to the amount you pay for electricity and insurance when calculating. The other tax the is overlooked is the smartphone and tablet expenses. Ensure that you use these devices for business purposes only to be eligible for this tax deduction.
Again, monthly internet bills are also deductible. Without the internet, many businesses will close. You should draw a clear line between the business expenses and personal expenses if you are working from home. Meal and travel expenses is another tax deduction you should not overlook. Before you file a tax return, ensure that you are mindful of expenses such as hotel room costs, airfare costs, telephone expenses as well as temporary internet charges.
The other tax deduction you should be mindful about especially if you are continuing education is the tax credit. You can also claim tuition expenses if you are enrolled in college and university. If you are a teacher and you buy classroom items out of your pocket, dont worry; you are also eligible for this tax deduction. Lastly, there is 20% pass-through deduction which allows taxpayers who earn their income through business or trade. To be more conversant with this new tax, find time to ask for illustrations from a reputable accountant.