Tax Deductions That Are Overlooked

During the tax season, most business people prepare their tax receipts for their tax write-offs. Apart from business people who use an accounting software program, those who are good at record keeping can also file the tax returns without much hassle. Mostly, business people dont even know which expenses make good tax deductions. You are likely to face a higher tax bill or a smaller tax refund if you dont understand the deductible expenses. The article herein discusses some of the overlooked tax deductions you should not miss.

Firstly, you should note that wages paid to your children are deductions you can claim. It is important to note that you only fill this deduction if you are a sole proprietor and not a corporation. Spouses who are in a partnership are allowed to fill this tax deduction. The other deduction that is overlooked is the children expenses. Remember that this tax is also deductible even if you pay someone for part of the day to watch your children so you can work. You dont have to be worried if the person looking after your children charges for transportation of your children because you can claim transportation expenses.

The other essential factor you should not overlook is Your Home Office. This tax deduction is calculated by considering the value of your mortgage or rent, insurance, and electricity. Many business owners also overlook smartphone and tablets deductions. You are eligible for this tax deduction if the smartphones and tablets are used solely for business purposes.

Moreover, monthly business bills are overlooked. Without the internet, many businesses will close. You should draw a clear line between the business expenses and personal expenses if you are working from home. Moreover, you should pay attention to the meal and expenses tax deduction. Costs such as airfare, hotel room costs, and telephone expenses should be part of the factors to consider when filing a tax return.

The other tax deduction you should be mindful about especially if you are continuing education is the tax credit. You can also claim tuition expenses if you are enrolled in college and university. Similarly, teachers who buy classroom items out of their pocket are also eligible for this tax deduction. Lastly, there is 20% pass-through deduction which allows taxpayers who earn their income through business or trade. Talk to a qualified accountant to help you understand the details of this review.