6 of the Most Common Tax Write-Offs That You Can Claim
Tax season is upon us, and with it comes the opportunity to maximize your savings with tax write-offs. Tax write-offs are deductions you can use to reduce your taxable income, saving you money in the process. But, of course, what taxes can you write off? This is the question many taxpayers ask and, unfortunately, fall short of making the most out of it. This, of course, lowers the amount of money they could’ve had by the end of tax season, which is something no one wants to realize.
So, to help ensure that you’re maximizing your tax write-offs, here are a couple of the most common tax write-offs that you can claim:
1. Business Expenses
Business expenses are one of the most common tax write-offs for businesses. These expenses can include office supplies, travel expenses, advertising, and even meals and entertainment. Be sure to keep track of all your expenses throughout the year and list them on your return.
2. Home Office Deduction
If you use part of your home as a dedicated office, you may be able to deduct certain expenses such as rent, utilities, and repairs. However, you must meet certain criteria to qualify for the deduction.
3. Vehicle Expenses
If you use your vehicle for business purposes, you may be able to deduct certain expenses such as gas, repairs, and maintenance. You can either use the standard mileage rate or actual expenses to determine your deduction.
4. Charitable Contributions
While donations are good for the community, donations to qualified charities are also tax deductible. Be sure to keep records of your donations and get a receipt from the charity to make sure you receive the full deduction.
5. Interest Expenses
If you have a business loan, you may be able to deduct the interest you are paying. This can help reduce your overall tax burden and save you more money that can then be used for other business uses.
If you have business equipment or property, you may be able to deduct the cost of depreciation over a certain period of time. This can help you save money on taxes in the long run.
While these are some of the most common tax write-offs, there are many others available depending on your individual circumstances. For example, you might be eligible to deduct state income taxes that are paid off, or you can also write off your student loan interest. Either way, knowing what kind of taxes you can write off and how to get refunds from the IRS will help you end the year with more money in your pocket.
Having said that, if you are unsure as to what kind of write-offs you’re eligible for or how to generally handle your end-of-year taxes, be sure to check with a qualified tax professional. They can make sure you are taking advantage of all of the deductions and credits available to you, ensuring you save as much money as possible by the end of the process!
Ash CPA offers trusted accounting and tax services at affordable costs in Framingham. If you are looking for the best tax accountant near you, get in touch with us today!