Potential Tax Deductions

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The purpose of a tax deduction is to reduce the amount that the government requests during tax time. There are many tax deductions available to those who are interested in doing some research. Deductions are simple and will save the filer money. It is beneficial to better understand these deductions and what documentation is needed to prove these deductions.

Potential Tax Deductions

Self-Employment

A self-employed person is both the employer and the employee, according to the IRS. Home office deductions are available to those who use a specific portion of their home as their office. Be careful with this deduction, as a work space must be created and maintained for government approval. Phone and internet may be deducted for business expenses …show more content…

The IRS knows that there are many reasons that people use to not pay their taxes, so it wants to support anyone who works to pay their taxes. Companies that prepare taxes will keep previous information recorded so they will be better able to maximize deductions and credits for the tax payer.

Education

There may be options to deduct costs of education. Tuition, fees, and student loan interest may be deducted by those who meet the requirements. Educators may deduct taxes on purchases that support the classroom or other educational tools. In most cases, fellow students or educators will be able to give advice on tax preparation. However, a tax professional will likely ask these questions during preparation.

Health Savings Accounts

The contributions to the health savings account is deductible for the individual contributor. The employers contributions are not able to be deducted. This means that saving for potential health emergencies can save the tax payer money. For those interested in learning more about health savings accounts, the IRS has put out a publication on them. …show more content…

This is designed to support those who want to advance or alter their current working situation. Information regarding deductions for job searching is available. Additionally, costs associated with moving is available as wel.

Medical Expenses

Medical and dental expenses may be deducted as well. There are many deductions available according to the IRS publication. Ambulance costs, as well as birth control, chiropractors, contact lenses, crutches, medication, lodging, meals, operations and many other things may be deducted. Visit the IRS publication link to see the full list of potential medical deductions. It also specifically mentions things that are not deductible, such as cosmetic surgery, dancing lessons, and insurance premiums.

Deductions and Publications

The IRS offers many deductions and credits. For those who are not interested in speaking with a tax professional, it would be beneficial to see what is available. The IRS website offers the entire range of publications that are available. It is important to keep tax information for a minimum of seven years. Though the rates of IRS audits are slowly decreasing, there are still risks of being

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