No one likes to sit down and go over their expenses from the past year. But did you know you could actually get some money back from your taxes?
You probably already knew that most people get a pretty substantial tax return, but the real question is: how do they do it? Almost anyone can get a great tax return if they consider everything that can be claimed.
Working with a tax lawyer can also help you know what you and your business is legally allowed to claim. There are certain caps and restrictions on what you can claim and how much of it you can claim, but there’s also a lot of unexpected things you probably didn’t know you could write off. Today, we’re going to go over 5 of the best tax write offs you probably didn’t know you could claim.
You can claim your dependants
Most people claim their kids and their childcare expenses. You can generally claim 20 to 35 percent of your childcare expenses, or up to $3000. But did you know that you could claim up to $6000 in care expenses for 2 other dependants? This means if you have a non-child dependant you care for, you could receive up to $500 on your return.
If you foster children or have adopted children within the last year, you can also claim additional expenses on them as well.
You can claim your medical expenses
You can get money back on your unreimbursed medical expenses, if they’re more than 7.5 percent of your gross income for the last year. This means that if you have unreimbursed deductibles that are qualified under your health insurance, you can claim them if they’re more than your total income.
The other expense people tend to forget is their HSA, or Health Savings Account. If you have an HSA through your health insurance that you’ve contributed to within the last year, you can claim those expenses on your taxes. The amount you can get returned may change depending on if you have self-only coverage or family coverage.
You can claim your educational expenses
This is one of the least claimed expenses. Student loans can be deducted as an adjusted income claim. If you’re still in school or supporting a student in school, be sure to see if you can file for:
- The American Opportunity Tax ($2500)
- The Lifetime Learning Credit ($2000)
- Tuition and Fee Deductions ($4000)
If you’re an educator and spent money on classroom supplies, you can also claim up to $250 of classroom supplies.
You can claim your business expenses
If you’re self-employed and bought something used to benefit your business, you can deduct it off your business income. Even odd expenses can be claimed. For example, if you have a cat that helps keep mouse infestations at bay, you can claim the cat’s food.
You can also claim part of your office space, even if it’s in your home! If you use a certain part of your home for business-related things, you can claim your:
- Real estate taxes
- Other household expenses
You can claim things you’ve bought
You can also deduct sales or state taxes income off your federal taxes. Check your state laws on income tax. This could mean a huge refund for those in states without income tax. If you made large purchases like a car in the last year, you can also itemize your purchases off your state taxes.
Most taxpayers already know you can write off charitable donations, but did you know you could also claim out-of-pocket expenses for them? Let’s say you go to a community charity event one evening, and bring snacks for everyone. You can claim the snacks, the gas mileage to drive to the event, and even your babysitter fees for the night!
Call a Tax Lawyer
No one likes doing taxes, but thoroughly going over everything you can claim can save you thousands of dollars. Working with a tax lawyer can also ensure you can claim everything you possibly can. You may have overlooked an expense that can actually help save you money on your taxes. Tax lawyers can also help you get out of trouble if you’ve accidentally claimed something that wasn’t a taxable expense. Writing off an expense that you can’t actually claim can mean both returning everything you’ve claimed on top of a hefty fine.