As painful as paying your taxes can be, it’s easy to neglect to make use of possible deductions that can save your family or business taxes. The 2019 Tax Code is very long and complicated so the average person will not be able to understand all the rules and nuances.
We spend days in training classes and hours weekly just to research and learn the details, so we know how hard it is for the business owner or working family to know all the rules and tax breaks.
What follows is a list of obscure deductions that many people we see could use if they only knew about them. But please keep in mind that this blog does not constitute as advice. Please see a Arizona CPA or attorney to make sure these deductions apply to you.
Common missed tax deductions people skip taking
Money that you lost gambling:
Gambling works both ways. If you win, the IRS counts it as income. If you lose, the IRS lets you report some of it as a deduction. If you win $1,000 and lose $2,000, you get to report the $1,000 as income, and an equal amount, $1,000, as a deduction for your gambling loss.
Interest paid on a student loan:
If you have a qualified student loan, interest paid on it is a possible deduction. It doesn’t even matter if your parents paid for it for you. If it’s your name on the loan, you get to claim the interest as a deduction.
There are a couple of other conditions that you need to satisfy if you are to qualify for this deduction, however. Your filing status needs to not be “married filing separately,” and you shouldn’t be listed on anyone’s return as an exemption.
Travel for your job with the military:
Whether you’re a member of the Reserves or the National Guard, you may need to travel to attend drills. If you have to travel at least 100 miles and stay overnight, you get to deduct the cost of driving there, your hotel expenses and half what you spend on meals.
If you have medical expenses for anything that helps with a physical or mental condition, you get to deduct those expenses as long as they add up to more than 10 percent of your adjusted gross income.
The IRS appreciates teachers:
School teachers often spend their own money to supply their classes with needed materials. It can seem to teachers as if no one cares about their generosity. The IRS does, however. If you’re a qualified K-12 teacher, you get to deduct as much as $250 for the materials that you buy for your classes. You don’t even have to itemize — you get to directly subtract your classroom expenses from your income.
Gifts+ for charities & non-profits:
Everyone knows that money or things donated to charitable organizations make valid deductions. People often don’t think of everything, however. If you spend money out-of-pocket to help with charitable work, it MAY count. As an example, if there is a charitable bake sale that you baked cakes for, the money that you spent on the ingredients can be deducted. It would be a good idea to itemize, or to save the receipts, however, in the event of an audit.
There’s one other idea that you can make use of if you are doing charitable work. If you’re doing unpaid volunteer work for a recognized charity, and need to pay a babysitter to take care of the kids while you’re away, you can list the babysitter’s fee as a charitable contribution when you file your tax return. You would need to be able to show some proof that the babysitter took care of your children while you volunteered, however.
2019 Deductions help save money
Paying attention to every possible deduction can save you substantial money. Many people do pay interest on their student loans, pay for medical expenses or insurance policy deductibles. It is important to not forget the ways in which the IRS helps you lighten your tax burden.
It is very difficult for the average family, individual or business owner to stay up-to-date on the latest tax rules and changes in deductions. If you realize that you are not taking advantage of some of these tax savings, or are ready to take advantage of the knowledge and education a tax accounting specialist has regarding the latest tax changes. Our friendly, and extremely knowledgeable team at Sean Core CPA in Chandler, AZ might be the accounting team you are looking for!
You can contact us by phone at 480-626-5043 or visit our NEW Chandler office to set up an appointment to meet with one of our accountants! Let our down-to-earth, professional and highly experienced CPA firm work for YOU!Please note that the information you obtain at this page or website is not, nor is it intended to be, legal advice.