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What Can I Deduct On My Taxes For Maximum Benefit?

Jul 19, 2008
During the last 18 years as a tax accountant I have been asked many questions but the most common is what can I deduct on my taxes? The answer I give to this question greatly depends on what I know about the particular needs of my client. Are they self employed? Are they asking on behalf of their corporation? Contained in this article are several tax deductions that I feel best answers this question for the broadest audience.

Expenses incurred during the tax year to move to a new location for employment reasons are deductible. There are certain tests that need to be met but if you qualify then you can deduct expenses incurred while house hunting, storing personal house hold items, lodging during the move, as well as transportation.

Did you try your hand at self employment last year? Success or failure does not govern the deductibility of many items. Cell phone, computer expense, wages to children and spouse, internet costs, and home office are only the tip of the iceberg for self employed individuals. Consult with your tax advisor to ensure you structure your personal situation to maximize these deductions.

Worthless debts arising from loans to friends and family are deductible in the year they become worthless. Have you helped your son or daughter and you know they will never be able to repay you? Did you help someone out of a jam and even though they promise to repay you you know they never will? Consult with your tax advisor about this deduction and you will not be sorry.

A little known deduction is miles driven to and from doctor and hospital visits. Also miles driven for a charity such as a church are deductible. Consult your tax advisor for the rates as they change each year but start keeping track of them now so you will not miss out at year end.

If you are a teacher you are entitled to deduct expenses you incur in the line of your employment. There are limits that fluctuate from year to year so consult you tax advisor and start keeping track of theses expenses now.

Have you heard of the "Additional child tax credit?" Most people know of the child credit as it gets quite a bit of media attention but the additional child credit in many cases is more than the child credit. Make sure you or your tax preparer is claiming this one.

When clients give me their K-1's from an S-Corporation or Partnership I ask them what expenses they have. Most people do not consider themselves self employed in this situation but if they are actively participating then they are entitled to the same deductions as other self employed individuals. Be sure to make your tax preparer aware of this so they are able to maximize your benefit.

If you work for someone else and incur expenses that are not reimbursed by your employer you can deduct these on your personal tax return. These deductions include cell phone, mileage, home office, meals and entertainment, internet, computer and equipment costs and many others.

In the forgoing paragraphs I have tried to answer the question what can I deduct on my taxes? I realize though that you have a unique set of circumstances therefore, as a reward to you for being willing to read to the end of this article, I am inviting you to email me with any specific tax questions you might have. Either I or a member of my staff will respond. Just follow the links at the bottom of the page to get my email address from my website.
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Jump to this website for many other tax deduction ideas in relation to the question what can I deduct on my taxes ? Do not forget to also check this website for many ideas in relation to starting you own home based business .
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