Thu Nov 21
Tax season can feel overwhelming, especially when you're trying to maximize your return. The IRS tax code is vast, and let’s face it, some deductions can slip through the cracks. If you’re not careful, you might leave money on the table. But fear not! As accounting experts in Dallas, Texas, we’ve compiled seven commonly overlooked tax deductions to help you save money and keep your hard-earned cash. Let’s dive in!
1. Home Office Deduction
With remote work becoming the new norm, the home office deduction is more relevant than ever. If you work from home, you may be eligible to deduct a portion of your rent or mortgage, utilities, and even internet costs. To qualify, your home office must be used exclusively and regularly for business purposes. Keep detailed records of your expenses, and use the IRS’ simplified method ($5 per square foot, up to 300 square feet) or calculate your actual costs.
2. Self-Employment Tax Deductions
Self-employed individuals often shoulder the burden of paying both employer and employee taxes. The good news? You can deduct half of your self-employment tax when calculating your adjusted gross income. It’s like a little thank-you from the IRS for running your own business.
3. Student Loan Interest
Even if you’re out of school, those student loans can still help you save on taxes. You can deduct up to $2,500 in student loan interest paid during the year, provided your income falls below the IRS’ threshold. This deduction applies even if you don’t itemize your taxes, so it’s an easy win.
4. Charitable Mileage
Most people know they can deduct charitable donations, but did you know you can also deduct the mileage you rack up while volunteering? The IRS allows you to deduct 14 cents per mile for charitable driving. Keep a log of your trips and the purpose of your travel to ensure you’re covered in case of an audit.
5. Job-Hunting Expenses
If you’re on the hunt for a new job in your current field, some of your job-search expenses might be deductible. This includes costs like resume preparation, travel for interviews, and even career coaching. Note that these deductions are subject to certain income thresholds, so consult with your accountant to see if you qualify.
6. Medical Expenses
Healthcare costs can add up quickly, but they can also lead to significant tax savings. If your unreimbursed medical expenses exceed 7.5% of your adjusted gross income, you can deduct the amount above that threshold. Eligible expenses include doctor visits, prescriptions, and even medical travel costs. Don’t forget about dental and vision care, as they’re often overlooked.
7. Energy-Efficient Home Improvements
Going green pays off in more ways than one. If you’ve made energy-efficient upgrades to your home, such as installing solar panels or energy-efficient windows, you may qualify for tax credits. These credits can directly reduce your tax bill, so be sure to save receipts and certifications from your installer.
The best way to ensure you’re not missing out on any deductions is to work with a professional accountant. Our Dallas-based accounting team specializes in helping individuals and businesses navigate the complexities of the tax code. We’ll dig deep to uncover every possible deduction, ensuring you keep more money in your pocket.
At PerfectBookkeeper, we’re here to take the stress out of tax season. Whether you’re a small business owner, a self-employed freelancer, or an individual filer, we’ll tailor our services to fit your needs. Don’t leave money on the table this tax season—reach out to us today to schedule a consultation.
Tax season doesn’t have to be a headache. By staying informed and proactive, you can claim every deduction you deserve. Ready to get started? Contact us today and let’s make this tax season your most rewarding one yet!
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