Filing taxes is a necessary process that every working person has to do. There comes a time, depending on the type of work that you do, that it may become confusing. Trying to figure out what is deductible and what isn’t, what you claim and what you don’t.
Talking with a professional can help you to find clarity in this task. Tax Crisis Institute is a great company that can assist you with your tax filing and any questions that you have as well. We have several locations available to serve you the best way that we can.
What Are Deductions?
Tax deductions are a part of filing your taxes that changes the taxable income that you earned that year. Donations to different organizations, things bought for business purposes, and many different other things are known as tax deductions. It is a process that can help you file your taxes, it can either get you more in your income tax or break even. We will discuss some areas that are deductible in this article.
Expenses To Charitable Contributions
Donations made to charitable organizations can be written off on your taxes. This can be in many different forms. Donating money to an organization or a church is one. The other is donating items to Goodwill or other second-hand stores.
You can take the value of whatever it is that you donated and write that amount off on your taxes. When you drop the items off at these places or give money to them, you will get a tax form that you are able to show as proof that you donated. That should be kept in your tax records for future references.
Car Expenses For Business
Being self-employed means that you are spending a lot of time using your own personal car for business. If your work requires you to drive, then you are able to use that on your taxes. The cost of the car, gas, maintenance, and mileage. You will need to keep track of what is business-related and show it to your accountant.
Child Care Expenses
If you are a working parent, most likely you have to pay for child care during the workweek. Childcare is not a cheap service to pay for. The cost that you pay monthly for your kids to be cared for while you are working can be written off on your taxes. The childcare development will give you a tax form to provide to your accountant.
Uniforms or Work Attire Expenses
When you have a certain attire that you have to wear to work, you are able to write the expense off on your taxes. Some places require scrubs or a specific uniform to be worn, and you can save the receipts to provide proof of the cost.
Even if you don’t have a specific uniform, but yet you have to wear dress clothes or a specific type of clothing, you can use that as well. It is important to just keep up with the costs that you acquire throughout the year. This will make things much easier when filing.
Internet and Cell Phone Expenses
Working from home is becoming a very popular thing for many people to do. To stay connected to your work, you are going to need an internet connection. When you are needing it for work, you can write off the cost of your monthly internet bill on your taxes.
The same thing goes for your cell phone bill or home phone. Many times you are still going to need to communicate with work or even customers. The monthly cost of your cell phone or home phone bill can be deducted as well.
Traveling for work can really add up in cost. When you think about the airfare, rental car, eating out, and anything else needed while traveling for work the expense can be high. You should always keep track of all of that and claim it on your taxes.
Expenses Of Equipment Needed
When you are self-employed or work in the trade industry, a lot of times that requires you to buy your own equipment. For example, hairstylists have to buy shears, blow-fryers, hairbrushes, and products. All of those things can be deducted when filing taxes.
The same thing goes for when you work in other industries as well. Whatever you need to purchase to do your job, should be claimed. It can be a lot to keep track of, but it will pay off in the long run.
There are many home improvements and expenses that you can claim on your taxes as well. When you add things to your home that are improving the overall value, you can claim the cost that you have done to it. The amount of capital cost allowance and depreciation can all be incorporated in your taxes.
Can I File My Own Taxes?
Anyone can file their own taxes, if they choose to. There are plenty of options to use online platforms that you can choose from. Many people choose to do this if they are confident that they know what they are doing. Filing a W2 is pretty straight forward, and even if you are making minor deductions, it can be pretty self-explanatory.
When it comes to filing different types of deductions or something aside from a W2, it might be easier to get the help of a professional accountant. They are going to know exactly how everything needs to be filed and what exactly you can file. You wouldn’t want to make a mistake and have to deal with errors that were made.
The Tax Crisis Institute has been a tax relief leader for over 30 years. When you work with the Tax Crisis Institute, we’ll make sure you don’t pay anything more than you owe!
Call Tax Crisis Institute today for a FREE consultation!