Many Americans have not filed their taxes yet due to this year’s new deadline on July 15th. If you haven’t filed yet, double-check your deductions with a professional tax accountant. You may have missed one! Did you know that there are items you purchase or services you take part in that are tax deductions? Learn more below and contact Ash CPA for a virtual consultation today.
Income Tax and State Sales Tax
Sales tax is one of those things you can use as a tax deduction as a tradeoff with your state income taxes. If you’ve made luxury purchases or major home improvements and the cost was greater than your state income taxes, you can claim them as a tax deduction. You can strategically make your purchases so they work to your advantage. Be sure to consult with a tax accountant to learn about tax-saving strategies.
Green Upgrades to your Home
If you have a primary residence that you own, invest in green upgrades. Some are tax-deductible! However, there are requirements for what you intend to do as well as for what state you’re in. The spectrum of upgrades you can make may range from heating and cooling HVAC systems to solar panels and wind turbines. Always consult with your tax accountant to assure you are making smart green upgrades.
Don’t have a primary residence? Invest in an electric or Hybrid-Electric car. You could get a tax credit. The stipulations include the following.
- Car must be purchased new
- Car must not be leased
Be sure to double-check with your accountant as some car models may not qualify for one or reason or another.
Medical Expenses for Dependents
If you are north of 65 years old and your medical expenses, excluding elective and cosmetic surgery, exceed 7.5% of your gross adjusted income, you can deduct the expense. If you have dependent people that have incurred medical bills that exceed your gross adjusted income, you can deduct the expenses as well. This includes dental as long as it’s not cosmetic.
Medical Tax Shelters
Medical savings accounts are a great tax shelter. A lot of companies offer these as a benefit. They aren’t the most popular for consumers because of the policies attached to them. However, you can claim the amount you personally contribute to it.
Service animals are a blessing to the lives of many people with disabilities. They’re a source of safety and comfort to those who care for them. The animal must be trained in some cases. They also have to be fed and medically kept up to par. So dog food, health checks, and training are deductible.
If your losses offset the gains of your gambling, you can deduct them. Yes, the flight and hotel and what it cost you to have fun! So what’s included?
- Trips and prizes won deducted at fair market value.
- Casino Gaming
- Horse and dog racing
- And of course Lotto
Schedule a virtual consultation with Ash CPA to learn more about this year’s upcoming Tax deadline. Our team can also prepare and file your taxes virtually! Call (617) 462-6651 or schedule an appointment here. We look forward to meeting you.