5 2017 Tax Deductions Your CPA Needs To Know AboutAll Articles
Tax season sends shivers down the spines of most people, but it doesn’t have to be that way! Using some little known tricks, CPAs and their clients alike can very easily save big money when filing their reports.
1. Job Search Expenses Tax Deduction
Did you know that you can deduct some of your job search related expenses? If you’re looking for a job in the same field you’ve been working in (so dreamers who quit their jobs for Hollywood are out of luck) are eligible for certain deductions like travel expenses for interviews, among many others.
2. Home Renovation Tax Deduction
Want to renovate your home without tightening your belt? Then you’ll want to know how many home renovations can actually qualify for tax write-offs. From taking advantage of tax energy credits to implementing home improvements which count as medical expenses to using your mortgage for renovations, there are a myriad of ways in which you can spruce up your home while saving money at the same time.
3. Tax Preparation Fees Deduction
While tax preparation fees are an allowed deduction, it’s extremely important to note that in order to be eligible for it, you must have all your deductions itemized and the sum of your miscellaneous expenses must exceed 2%. This is where the pros can come in handy!
4. Jury Duty Pay Tax Deduction
Standard expenses like vehicle mileage, phone usage, and meals (up to $100, so don’t take this as an opportunity to dine at Ruth’s Chris!) can all be deducted from your taxes. Keep track of your spending next time you’re bored at jury duty. Just don’t let your accounting keep you from paying attention to the trial!
5. Penalty of Early Withdrawal Tax Deduction
This tip saves money in a very different way than the others on this list. If you use money from your IRA before the age of 59 ½, you’ll be slapped by the IRS with a 10% penalty which cannot be deducted. So it’s vital to consult with a financial advisor before making any rash decisions.
Not all of these tips and tricks will apply to everyone, but even being aware of just one of them can save a ton of money. Maybe instead of giving up your hard earned cash to Uncle Sam, this year you’ll be able to use it for the things you actually need!