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Tax season is an appropriate time to provide tips that ensure you won’t miss out on any deductions. Below are 5 common deductions many taxpayers miss.....
1) Education Expenses
This is a big one because the tax benefit can be thousands of dollars in your pocket. Education costs are expensive these days; take advantage of the huge credits available to you for paying these expenses. Be sure to give your tax preparer all expense information including tuition paid, books, class materials, etc. You’ll be glad you did!
2) Motor Home, Boat, Travel Trailer
The interest paid on the above items may qualify as a tax deduction for your “second home”. In order to be deductible, the property must have sleeping, cooking, and toilet facilities.
3) Goodwill Donations
Donations of clothing, household items, etc. to Goodwill and other qualified organizations can earn you a nice tax benefit. Be sure to record the fair market value of the property donated, along with keeping receipts and a list of items donated. We have a checklist on our website to help you with this. Visit ChadPeshke.com/tax-worksheets to access this resource.
4) Home Office Depreciation
If you claim a home office on a house you own, don’t forget to provide your tax preparer with cost basis information on your home for depreciation. The IRS requires that you account for depreciation anyway, you might as well get a tax benefit in the meantime! Check out our Home Office Deduction worksheet.
5) Vehicle License Fees
California vehicle license fees are considered personal property. Personal property taxes can be deducted on your tax return. The eligible expense for a tax deduction is the amount you paid for “License Fees” on your DMV registration renewal.
There are many other items that taxpayers often forget to deduct. Contact us for assistance with preparing your income tax return...we’re here to help!