Things You Didn't Know Were Tax Deductions

There’s not a person on Earth who doesn’t want to do everything in his or her power to

receive the biggest tax return possible. That’s why we all list deductions when filing. While you’re probably aware that the major deductions are mortgage interests, charitable contributions, and medical expenses, there are probably also a few things you didn’t know were tax deductions.

Sales Tax

You can deduct your state sales tax or state income tax from your federal income tax. This mostly applies to bigger purchases, so while we wouldn’t really try to deduct the sales tax from your online shopping habits, you can definitely check the IRS itemized purchase chart and deduct the sales tax on an engagement ring or car.

Medical Expenses

If your healthcare premiums exceed 7.5% of your adjusted gross income, you can claim

them as an itemized deduction on your income tax return. If you’re self-employed and pay for your own health insurance, you may be able to claim 100% of your premium costs. The amount would simply come off your adjusted gross income rather than be listed as a deduction.

Teacher’s Supplies

Basically every teacher buys classroom supplies using money from their own pockets, and the IRS understands that. K-12 educators can claim up to $250 spent on materials that gets subtracted from your income, so you don’t necessarily have to itemized the costs.

Babysitter Costs

If you hired a babysitter to watch your children while you volunteered at a recognized

charity for no pay, you can list that expense as a charitable contribution. You just have to be able to prove that the babysitter was performing his or her duties while you were volunteering.

Non-Typical Business Expenses

If you make purchases for your business, they can count as deductions — even if they’re a bit strange. For example, bodybuilders have been able to claim body oil they use during competitions.

Unsure if one of your expenses can count as a deduction? Ask a tax expert! American Investment Planners, LLC offers professional tax preparation services to individuals and businesses across the country. Let us make your tax season less taxing! To schedule an appointment with one of our tax professionals, please call (516) 932-5130, or email info@americaninvestmentplanners.com.