15 Tax Write Offs that You May Have Missed

No one likes paying taxes. A few people may enjoy preparing tax returns, like Allan J Rolnick, a professional tax preparer, but absolutely no one actually likes paying for the taxes. Sure, we may understand why we should pay taxes, but giving away our hard-earned money is painful for most people. That is why tax write offs are so important. They let taxpayers fork over a little less to Uncle Sam every year.

You may not realize the huge number of tax write offs that you can take advantage of on a yearly basis. Allan J Rolnick can help. Allen can look over your income, expenses, and major financial aspects of your life to help you determine if you qualify for any of the following write offs or many of the other ways to lower your tax obligations.

The Standard Deduction

Most Americans take the standard deduction. This saves them from having to keep track of a variety of expenses. For a lot of taxpayers, it is higher than what they would have paid to itemize regardless, so it makes sense to take this deduction.

Each situation is different, so whether you take the standard deduction is going to depend a lot on your individual financial situation. Find a tax preparer who will test your tax obligations both ways to determine which method is the best option for you and your family.

Itemized Deductions

If you do not use the standard deduction, then there are many expenses that you may be able to specifically list out to decrease your tax obligation.

1. Mortgage insurance premiums. If you are a homeowner, you may be able to deduct all or a portion of the insurance that you pay based on your mortgage.
2. State and local sales tax. If you paid any sales tax throughout the year, you can deduct it as an itemized expense. Don’t worry! The IRS offers sales tax tables you can use if you did not track all of these expenses throughout the year.
3. Cash donations. A portion of your cash donations to qualifying charities is tax deductible. Just be sure and keep good records of all your donations!
4. Non-cash donations. You can deduct the fair market value of the non-cash items you donate. This means that you can deduct what the item is worth at the time you donated it (not at the time you bought it).
5. Expenses for charity work. If you travel for charity obligations, you may be able to deduct a portion of this expense.
6. Job search expenses. Searching for a job can be costly. Some of these expenses may be tax deductible if you itemize.
7. Medical and dental expenses. If you pay a high amount of medical or dental expenses, you may be able to deduct a portion of these as an itemized expense as well.
8. Tax preparation fees. You can deduct the amount that you pay your tax preparer (in the previous year) to prepare your taxes for you (Add this to the reasons to employ a professional tax preparer!)
9. Mortgage interest deduction. If you are a homeowner, you can usually deduct your mortgage interest payments. The same applies to mortgage points in many situations.
10. Renovating your home for medical reasons. Usually, renovating your home is not tax deductible. However, if you are remodeling for medical reasons, such as adding ramps or making doorways wider, then you may be able to itemize these expenses as a medical expense.
11. Business use of your car. If you have use your car for unreimbursed work travel, then you may be able to deduct mileage on your taxes.
12. Other business travel expenses. Traveling for business often means hotels and food expenses. Some of these expenses may be tax deductible as well.

Other Notable Deductions

These deductions are available whether or not you itemize. They are often referred to as “above the line” deductions.

1. Tuition and fees. In many cases, you can deduct amounts you paid for qualifying tuition and fees for you, a spouse, or a dependent.
2. Student loan interest deduction. You can deduct up to $2,500 in qualifying student loan interest payments. There are income caps on this deduction for higher earners, however.
3. Moving expenses. If you have moved over a certain number of miles to a new job, then you may be able to deduct some of your moving expenses.

There are so many more tax write offs that you can take advantage of as a taxpayer. An experienced tax professional will be able to tell you which ones will be the most beneficial to you. Call Allen J Rolnick at (718) 841-7317 or use the Contact button below for more information.