Tax Deductions That Work
OK, it is crunch time for doing taxes now. Just be sure that in your rush to get your taxes done, you do not overlook some perfectly legal ways to reduce your bill or increase your tax return. Here are some tax deductions you may not have thought of. Keep in mind that this is not professional tax advice, but just stories of allowed deductions. Do your own due dilligence!
Paying Your Spouse or Signifigant Other For Real Work - If you run a business, and your spouse or partner does real work for that business, you can pay them and deduct the expense. For example, if you own rental property, and your spouse or partner gets paid to collect rent, that would seem legitimate. Keep in mind that normal chores like washing dishes will not count.
Work Related Travel – If you have to travel for work, even if it is a professional convention or event, your expenses should be tax deductible. Now a business convention in Las Vegas may mean you can deduct reasonable meals and transportation and hotel bills. A side trip to Hoover Dam for please would not be considered part of the deal.
Home Office – Be careful here, because you really need to set aside a room of your house as a home office, and you cannot just deduct a room which also gets used most of the time for other things. But if you do have a home office, you can also deduct a percentage of other bills – like utilities and repairs, and sometimes even outside landscaping - that is in proportion to the size of the room vs. the size of your home.
Individual Health Insurance – If you are self employed, a contract worker, etc., and you have to buy private insurance because you do not have a group plan, your premiums are deductible. This deduction can help a lot of small business people afford individual health insurance rates too. This is only fair because companies have been able to deduct this expense for years.
Business Related Car Trips – You need to keep a travel log, but you can deduct miles you put on your car for your business even if you also use the vehicle for personal use.
Common and Legal Ways To Reduce Federal Taxes to the IRS Hard Times and Health Care What Will Employers Cut Next?
