During the tax season, most business people prepare their tax receipts for their tax write-offs. It is faster if you are a good record keeper or if you use an accounting software program. 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.
The first deductions are for wages paid to your children. It is important to note that you only fill this deduction if you are a sole proprietor and not a corporation. However, if you are in a partnership with your spouse, it is okay to fill this deduction. It is also worth noting that children expenses are another significant deduction that is often overlooked by most business owners. 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. In case the person caring for your child charges for the transportation of your child you may also be eligible to claim transport expenses.
For business people who operate from home, you will be required to fill Your Home Office tax deduction, which is calculated by the space used to house your 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. It is worth noting that the internet is a vital tool for many businesses. Also, be careful to separate business expenses from personal expenses if you have a home office. The other tax deduction that is overlooked is meals and travel expenses. Costs such as airfare, hotel room costs, and telephone expenses should be part of the factors to consider when filing a tax return.
A tax credit is also another deduction that is often overlooked especially by those who are continuing their education. Individuals who are enrolled in a college or university may also claim tuition expenses. It is worthy to note that this tax deduction also applies to teachers who buy classroom items out of their pocket. Lastly, there is 20% pass-through deduction which allows taxpayers who earn their income through business or trade. Ensure that you understand what this new tax deduction entails by seeking assistance from a reputable accountant.