What are some uncommon tax deductions?
The 10 Most Overlooked Tax Deductions
- State sales taxes.
- Reinvested dividends.
- Out-of-pocket charitable contributions.
- Student loan interest paid by you or someone else.
- Moving expenses.
- Child and Dependent Care Tax Credit.
- Earned Income Tax Credit (EITC)
- State tax you paid last spring.
What items qualify for deductions for tax purposes?
Some of the more common deductions include those for mortgage interest, retirement plan contributions, HSA contributions, student loan interest, charitable contributions, medical and dental expenses, gambling losses, and state and local taxes.
What are some red flags that can trigger a tax audit?
17 Red Flags for IRS Auditors
- Making a Lot of Money.
- Failing to Report All Taxable Income.
- Taking Higher-than-Average Deductions.
- Running a Small Business.
- Taking Large Charitable Deductions.
- Claiming Rental Losses.
- Taking an Alimony Deduction.
- Writing Off a Loss for a Hobby.
What deductions can you take if you don’t itemize?
Above-the-Line Deductions
- Self-employed health insurance.
- Health savings account contributions.
- Retirement plan contributions by self-employed taxpayers.
- IRA contributions.
- 50% of self-employment taxes.
- Penalty on early savings withdrawals.
- Student loan interest.
- Tuition and fees.
Is cell phone expense tax deductible?
You can qualify for a cell phone tax deduction from cell phone charges incurred when the mobile phone is being used exclusively for business. There is not an IRS cell phone deduction for self employed people, exclusively. However, you can also deduct additional business expenses that you incur.
Can I claim car expenses on my taxes?
Individuals who own a business or are self-employed and use their vehicle for business may deduct car expenses on their tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business.
What expenses can I write-off?
What Can Be Written off as Business Expenses?
- Car expenses and mileage.
- Office expenses, including rent, utilities, etc.
- Office supplies, including computers, software, etc.
- Health insurance premiums.
- Business phone bills.
- Continuing education courses.
- Parking for business-related trips.
How much deductions can I claim without receipts?
$300
Basically, without receipts for your expenses, you can only claim up to a maximum of $300 worth of work related expenses. But even then, it’s not just a “free” tax deduction. The ATO doesn’t like that.