Tax Deductions You Might Be Missing: Uncover Hidden Savings
Filing taxes can be a daunting task, especially when you're trying to make the most of your deductions. If you’ve filed for an extension and still need to complete your 2022 tax return, pay close attention. Certainty Tax Advisors is here to educate you on the commonly overlooked tax deductions that could significantly lower your tax liability. Let’s dive in and uncover these hidden savings.
Home Office Deductions: Optimize Your Workspace Expenses
Filing your taxes when you’ve been working from home comes with opportunities for deductions.
Deduct a Portion of Your Rent or Mortgage
If you use a portion of your home exclusively for business, you may be eligible to deduct a part of your rent or mortgage interest.
Don’t forget about utilities! A percentage of your electricity, internet, and phone bills can be deducted if you’re using these services to facilitate your home office.
Self-Employed Expenses: Keep an Eye on Your Business Costs
For self-employed individuals, there’s an array of expenses that you can deduct to reduce your taxable income.
Health Insurance Premiums
If you’re paying for your own health insurance, you might be able to deduct the premiums.
Using your car for business purposes? Keep track of mileage, as you can claim a deduction for business-related travel.
Education-Related Deductions: Invest in Yourself
Education is an investment in your future, and the IRS recognizes this.
Lifetime Learning Credit
The Lifetime Learning Credit can provide a credit of up to $2,000 for qualified education expenses.
Student Loan Interest Deduction
If you have been paying interest on student loans, you might be eligible to deduct up to $2,500 of the interest paid.
Tips for Tracking and Claiming Deductions
Now that you’re aware of these deductions, it’s essential to know how to track and claim them effectively.
Keep Organized Records
Maintain an organized filing system for all your receipts, bills, and other documents. This will simplify the process when it’s time to file.
Consult a Tax Professional
Consulting a tax professional can be invaluable in identifying and correctly claiming deductions. They can provide expert advice tailored to your situation.
Remember, paying taxes is a civic duty, but overpaying is not. Make sure you take advantage of all the deductions available to you. If you’re preparing to file your 2022 tax return after an extension, Certainty Tax Advisors can help you navigate these deductions and more. Reach out to us for professional assistance tailored to your unique tax situation.