With April’s tax filing deadline drawing ever closer, are you still struggling to understand the deductions that you qualify for this year? Perhaps you have a fairly good understanding of what deductions you’re eligible for, but feel like you could still benefit from some tax filing assistance in Des Moines, IA.
Learn what you should know about deductions, including both some common and not-so-common ones you may be eligible for.
What is a deduction?
A tax deduction allows you to lower your taxable income, resulting in a decreased amount of tax that you will owe to the federal government. As a taxpayer, you don’t need to be wealthy to claim deductions. Many middle- and lower-income filers may be eligible for deductions, including:
- Student loan interest: If you have made student loan payments in the past year, you may be able to list the interest as a deduction, depending on your income level.
- Health savings account contributions: If you have a health savings account, the contributions you make come from pretax dollars, thus lowering your taxable income.
- Charitable contributions: Be sure to keep records of any gifts—money or goods—that you donate to charitable organizations. You may also be able to claim out-of-pocket expenses for charitable work you have performed. For example, if you purchased supplies necessary to perform your charitable duties, such as baking ingredients for a fundraiser, you can list the cost of these items. You’ll want to save any receipts or other records related to the amount you paid.
- Miscellaneous business expenses: If you are a business owner and use your car for business purposes, you can use the most current IRS standard mileage rate to calculate the amount that you can deduct. Similarly, if you use your car for work only (and never for personal purposes), you may be able to claim a deduction. If you are a business owner, you should also keep track of any business travel or entertainment expenses throughout the year, as some of these may be deductible at tax filing time.
- Contributions to your IRA: Do you make contributions to a traditional IRA? If you meet the income eligibility requirements, you may be able to list these as a deduction.
If you qualify for one or more of these deductions or have come across additional deductions that you may be eligible for, make sure to bring all of the necessary paperwork documenting your expenses to your appointment for tax filing assistance in Des Moines, IA. If you have a question about whether a particular form or document is relevant, you should bring it along. It’s always better to bring too much documentation rather than not enough and have to extend the tax preparation process.
When you’re ready to schedule an appointment for tax filing assistance, the experts at Accounting & Tax Professionals, PLC are here to help you navigate through tax season smoothly. We pride ourselves on our unparalleled service.
In addition to tax preparation, we offer other personal and business services, including tax resolution, tax audit representation, small business accounting, notary services, payroll, investment consultation and financial and tax planning. Contact us today!