What can you Deduct on Taxes
Many people wonder what you can deduct on your taxes each year. Tax write offs will save you a lot of money come tax season so its important to know the ins and out of write offs. Without any further ado, this is what you must know about tax write offs…
What Can I Deduct?
Business Expenses
Do you own a small business? Are you self-employed? Private contractor? There are many, large, tax deductions you can take if you are.
All that traveling you do to and from work can be deducted. For instance, if you are a plumber and travel from one house to another, which may even rack up to 100 miles in one day, you can deduct it all. All that gas you are putting in is a great write off. You can also deduct much of the cost to repair the vehicle. If it is soley used as a company car all of it can be deducted.
Office supplies and equipment can be deduted as well. All those reams of paper, pencils, desks, computers you name it! If we go back to our plumber example you can deduct all the cost of the pipes and and tools you need to do your job!
Home Owner
You can take away a lot of the tax burden just by owning a house.
It may seem obvious but, many people forget to deduct the interest on their home mortgage each year. This is a huge savings if you are not already taking advantage of it.
Remember that deck you built last year? You could have received a tax deduction from that as well. All those little home improvemnets over the years adds up. New siding, roofing, landscaping, security system deduct them all! Not only that but your house will also be worth more now.
College Students
For those who need every bit they can get.
Their is a tax deduction called “Life Learning Tax Credit”. As long as you are taking one class at an accredited school you are eligible for this tax deduction. For the first $10,000 dollars you spend on educational expenses you can write off 20%. Which means you can save $2,000 dollars!
(You must make less than $52,000 if you file alone or $105,000 as a joint to qualify for this benefit.)
Many states have tax specific tax deductions for yearly or quarterly tuition. A college adviser will be able to tell you how they work.
There are a lot of ways to save when the tax man comes so make sure that you take advantage of everyone of them!
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