Now that the holidays are over and you have hopefully kicked off the new year on a positive note, the next big hurdle is to prepare for tax season. That means getting your receipts together, going through tax records and getting your accounting paperwork in order. Here is a short deduction checklist to jump start your efforts:
Travel expenses. Traveling for business purposes can involve hotel rooms, airfare, dry cleaning and other expenses that can quality for deductions. Professional fees. All fees paid to lawyers, CPAs, consultants and other professionals for business purposes can generally be deducted in the year they were incurred. Home office. If you use a portion of your home for conducting your business, which includes meeting with clients or administrative work, you can most likely also deduct a portion of the indirect expenses related to your home office like utilities. New equipment. Don’t forget to deduct that new printer, computer, camera or fax machine if they are used for business. Educational expenses. College courses, seminars, books and DVDs used to grow your business or enhance your skill sets may qualify as tax deductions. Energy saving improvements. Don’t forget to deduct energy-efficient improvements that you may have made to your home. Energy saving appliances, windows or doors can all qualify for additional deductions. Job hunting deductions. Unfortunately for some, unemployment has been a stark reality this year. However, you can deduct some of the expenses incurred while looking for a job. If you traveled, hired an agency or had a resume prepared, you can most likely deduct those expenses.
It’s important to take all the deductions you can to come out ahead this tax season. The best tip is to hire a professional tax preparer to ensure that you properly itemize the most deductions with the least chance of being audited.