At Coastal Business Services, we understand that tax season is not something that most taxpayers look forward to. While many may put some money back from each paycheck to help them pay for their taxes throughout the years, these same taxpayers may still owe a bill at the end of the year. No one wants to pay the government more than they have to. Luckily, there are many deductions present that you may qualify for. These deductions will become your best friend during tax season. They help to lower the amount of your tax bill. Depending on the amount, these deductions can help you to receive a refund from the government.
Many taxpayers wonder what can I deduct on my taxes. The IRS offers many deductions for taxpayers who are able to prove that they incurred certain expenses during the year, and these deductions can change from year to year. But you will not be able to claim just anything. While some medical deductions are allowed, you won’t be able to randomly deduct your grocery bills or that coffee you enjoyed that morning. Let’s look at some of the deductions that Coastal Business Services can help you with during this tax season to put more money back in your pocket.
Dental and Medical Expenses
Taxpayer are able to deduct a portion of their dental and medical bills they incurred during the tax year. These expenses can be applied to your dependent children, your spouse, or yourself. You will not be able to deduct expenses that were paid for with health insurance. Just because the bill was $10,000 does not mean you can deduct this much from your taxes if you only paid $500 of the total bill after insurance.
Not everyone is able to deduct these expenses from their taxes. Coastal Business Services can help you to figure out which medical expenses are deductible for you. In most cases, you can only deduct any medical expenses that go above 7.5 percent of your adjusted gross income. Anything below this is not deductible. Our professionals can take a look at your medical expenses and help you determine how much you are able to claim.
Taxes
Some nonbusiness taxes are deductible from your tax return. These can include taxes such as motor vehicle taxes, sales tax, personal property tax, real estate tax, foreign and local income taxes, and state taxes. To see if you qualify for this deduction, bring in your receipts and Coastal Business Services can assist you.
Home Mortgage Interest
If you own your home and make mortgage payments on your primary residence or a second home, you can deduct some of the interest that you make each year. The IRS also considers loan points a type of mortgage interest and you may be able to deduct this from your tax return. Keep in mind that credit card and consumer loan interest is not deductible. You should receive forms from your mortgage company stating how much interest was paid in the previous year.
Charitable Contributions
Another deduction that Coastal Business Services can assist you with during tax time include charitable contributions. These organizations must be religious or nonprofit to be considered and you must be able to prove, either by a written notice from the organization or with a blank check or other form when it comes to a cash donation, that you did give to the charity. Pledges of donations will not be deductible. It is always best to have as much information on your proof of donations as possible including the amount given, the name of the charitable organization, and when you donated.
If you are unsure about what you can deduct on your tax returns, make sure to bring in your receipts and other information to Coastal Business Services. Our professionals will look over the information and help you to fill out the forms correctly.
Business Expenses
Taxpayers who incur expenses with their jobs can sometimes deduct some of these expenses. Some of these deductions will include travel expenses, vehicle, home office, and some other expenses that you take on for work. Not everything will count as a business expense though, so talk to Coastal Business Services to ensure that you are getting all the right deductions without claiming something that isn’t allowed.
Educational Expenses
If you paid for any educational expenses during the year, you may be able to deduct some of the costs for your supplies, transportation, fees, books, and tuition. Usually you will have to have proof of paying these expenses and that they were not covered by an employer or other financial aid. Usually a receipt or your credit card statement will work to prove you had these expenses.
All these deductions can be difficult for taxpayers to keep straight. Many may wish to claim these deductions, but worry that they don’t qualify or that it will take too much work to make it worth their time. At Coastal Business Services, we believe that taxpayers should get the most out of their tax return each year. We will walk you through each of the donations to find the best choices to lower your tax bill.
When you are looking for a tax preparer who can help you with all your tax needs, look no further than the experience of Dennis O’Brien from Coastal Business Services, LLC. Located in Farmingdale, NJ, O’Brien has been helping individuals and businesses get the tax breaks they need for years. Give us a call today at 732-996-0608 to get started on your taxes today!
Dennis O'Brien