Simple Work Related Deductions
1.
Wardrobe, but only if it is uniform related, and
you had to buy it.
2.
Dry cleaning-if it is reference to your work. An
example might be military or police uniforms.
3. Special trips for work mileage-it helps to
keep a notebook in the car for starting and ending mileage. Normal commute time
cannot count. The boss wants you to attend a workshop in the next state that
can count, but not if you are reimbursed by the company.
4. Cellphone, Laptops, & Internet service
are deductible if you can prove it is 100% work related. Most of us can’t, so it isn’t worth trying.
5. The home offices
causes the most audits, I would avoid it. I have a home office, but never
declare it.
6. Supplies-do you
have to provide supplies to perform your job. Keep the receipts.
7. Food and Drink-
entertaining clients, or you are at a work related function. This gets tricky. Alcohol can’t be written
off. On your receipt, you need to note whom you were with, and what aspect of
business you discussed.
Household
Deductions
This year was a
moving year, but I didn’t get the moving deduction. (Sigh)
1.
Moving Deduction-you have to prove it is work
related by moving at least 50 miles closer to work. This works out well if you
receive a new job elsewhere. Keep the movers or U-Haul receipts, all the
receipts for packing supplies, and mileage there.
2.
Making your home more energy efficient- fixing
furnaces, water heaters, etc. Putting in new windows, doors, and insulation counts
too.
3.
First time homebuyers qualify for a deduction,
as do people who pay mortgage insurance, and mortgage interest.
Charitable Deductions
Remember those twenties in the
offering plate, or dollars you put in the red kettles, they don’t count. If
there isn’t a paper trail, and it isn’t a registered charity, it doesn’t count.
It also doesn't count if you received some small gift for your donation. You are
buying a cheaply made item for an inflated price.
1.
Goodwill/Am Vets/DAV/Salvation Army- you must know the store
address, the date of drop off, and itemized list of items. Turbo-tax is good
about giving you value for each thing. Don’t go crazy trying to remember. Instead, keep a Goodwill Box with a list
beside it. Write down the item, when you put it in the box.
2.
Churches-will give a record of donations if
received with a name. That is why they came up with offering envelopes.
Not all
institutions are charities, so you don’t get credit for donating to them.
Energy Efficient
Car Deduction
Well, I thought I
had that one, oops missed that one too.
1.
Think plug-in, if you can physically plug your
car in to charge overnight, then you're good. Being a hybrid isn’t enough
anymore.
2.
Building a charging station for your car is
deductible.
Children,
Childcare, and College
1.
Children are always good deductions. Divorced
parents need to be clear on who gets the deduction year to year.
2.
Childcare receipts-you may pay a relative to
watch junior. You need clear documentation to show this. Paying by check is the
easiest way.
3.
College-the college may not even send you the
1098T form. It is up to you to download it from the college. Do not forget to
keep receipts for books and other associated fees. Make sure to write a
narrative on each receipt. Room and board
doesn’t count.
You may qualify for tons of
deductions I didn’t mention. Even if you just run to Meijers to buy Turbo Tax
software, keep the receipt for next year. Complicated taxes, or perhaps you
forgot to file previous years, then you really want to invest in a CPA. If you only held down one job with taxes
withdrawn every check, then you should be able to do your own.
Start getting organized for the
2013 tax year. Keep your receipts, but label them and organize them in an
accordion style folder. You may find out some won’t count, but others do. You
can wait until the end of the year to toss it if it is no good. If you do your
homework now, it will make taxes much, much easier this time next year.
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