When tax time rolls around, it’s always important to know where you’re going to be able to save money and where you’re allowed to claim your deductions. While hiring an accountant can help to sort out much of this information, you should still have a basic understanding of how and where you’re saving money during the tax season. Take a look at these 7 tax deductions that you can use to save big bucks on your taxes this year:
If you work from home and have an office dedicated to your job, the odds are that you’ll be able to claim a home office on your taxes. Keep in mind that this can’t simply be a room with a computer located somewhere in the vicinity, but a space which is used solely to conduct your business and related issues.
While paper clips, pens, sticky notes and other supplies are relatively inexpensive at first, the cost begins to add up. Fortunately, these items are deductible in most cases. You can use these tax deductions even if you don’t have a home office. All you need to do is keep track of the receipts from your purchases.
If your business boasts a waiting area, an employee lounge or any other space that needs furniture, you’ll be able to claim a deduction for them. Again, you’ll need your receipts when it’s time to file, but the deduction itself is fairly straightforward.
Computers and other electronics aren’t cheap, but they play a huge role in practically any business. Tax deductions can help you offset the expenses of buying this necessary equipment when tax season rolls around.
Word processing software and other computer programs or subscriptions that you use to keep your business afloat can be considered for deductions during tax season as well. This includes magazine subscriptions as well.
If your company relies on different forms of transportation, you may be able to use tax season as a chance to offset the cost of purchasing and registering your business’s vehicles. There are certain guidelines governing this, however, that you should speak to a professional about first.
Another benefit available for those who rely on transportation a great deal to get the job done is being able to claim the miles covered on the job. However, you’ll need a detailed record to get your money back, so keep a log of dates, miles, parking costs, tolls and other pertinent information on hand.
Knowing where you can save money with your tax deductions is important, and crucial if you’re looking to make the most of your cash flow during the tax season.