With the U.S. tax code being over 700 pages in length, nobody is expecting you to be an expert on doing your taxes. Furthermore, with all the complexities and exceptions to loopholes that are within the tax code, it can seem like an unsolvable equation to determine whether you can include certain deductions. That's why tax preparers and accountants are there for you. Here are some little-known tax deductions that you want to bring up and discuss the next time you're preparing to file taxes.
The economy has been tough for several years, and many people still struggle with unemployment. If you were seeking a job during the tax year, you can deduct the costs of job-hunting. This doesn't mean that you can write off an entire new wardrobe if you relied on your credit card for some retail therapy. However, any legitimate costs for finding work can be deducted, including transportation expenses such as cab fares, lodging if you needed to stay overnight in the city you interviewed for a job lead, and employment agency fees.
Foster Pet Care
If you have opened your home to a cat or dog in need and are fostering the animal, you may be able to deduct all the expenses of the animal's care from your taxes. In order to qualify the taxes, you need to be fostering from a rescue organization that is a 501(c)(3) charity. Once you decide to formally adopt the animal, then the expenses of the animal's care are no longer tax-deductible. If you foster more than one animal, though, all of the expenses related to caring for those animals are eligible.
Alternate Health Treatments
While you may realize certain health care expenses are deductible, what most people don't realize is that alternative medical treatments are also deductible in many instances. Did you need to get a hot tub specifically as part of a treatment or as a tool to help you heal from a disease, injury, or condition? Then it may be deductible. The same is true for other home improvements and even swimming pools.
Finally, tax preparation in all states can be complex. While you may very well qualify for several of these deductions, be sure to consult a professional tax preparer before claiming any of them. It's important to consult a professional accountant who can guide you throughout the tax preparation in regards to your specific situation. You may even learn further deductions you never knew existed!Share
23 December 2015
Accounting is the absolute most important element of running a business. If you mess up the bookkeeping even the slightest bit, the entire business could be in trouble. I know how costly a small bookkeeping error can be. About three years ago, I made a seemingly small mistake in the financial records for my business and the next year when I filed my taxes, things were very bad for me. What would have required a small tax payment had suddenly turned into a big tax bill and quite a headache. Since then, I have worked with an accountant and things have been better.