Unlikely Tax Write Offs for 2017

January 19, 2017

For many people, tax time is a time of stress and confusion. Figuring out how much money you owe or you will get as a refund can be confusing and stressful. It’s likely that there are many deductions you haven’t taken into consideration that could save you a decent amount of money. From medical expenses to investments to mortgage fees and interest, there are a lot of little known deductions that, when added up, could equal big savings. Let’s look at some more specific deductions you could be missing.

Personal Care Write Offs

Some medical expenses can be a tax write off if the expenses equal more than 10% of your gross income. Whether the expense comes from insurance premiums or uncovered medical expenses, if it exceeds 10% of your income, it can be deducted. Additionally, if you are self employed and cover the cost of your own health insurance, that expense can be considered a deduction. Contributions to a health savings account are also deductible, so if that is how your coverage is set up, make sure to understand what you can and can’t deduct. And while most home renovations are not tax deductible, renovations for medical reasons, such as installing ramps or widening doorways to fit a wheelchair, are deductible.

Non-Taxable Income

Most income is taxable, but money received for Jury Duty may not be if you give it to your employer for being paid while out of the office. In this case, the Jury Duty pay is only taxable if your employer continues to pay you while you are serving

Expense Write Offs

Some investment expenses can be considered tax deductible, but not all. Penalty fees for early IRA (and similar account) withdrawals are also tax deductible. Similarly, any fees associated with investing can be counted as a deduction. One other major deduction that is sometimes overlooked is alimony payments, which can sometimes be very costly. If you make monthly alimony payments, make sure to discuss it with your Maryland CPA, or take it into account while filing your taxes.

Home Write Offs

Some home related expenses can be written off as deductions, such as moving expenses for job relocations and mortgage related fees and expenses. If you have moved for a job relocation, some expenses, such as the cost of the moving truck, short term rentals and gas/traveling expenses can be written off. Some mortgage expenses can also be tax deductible, such as interest, mortgage insurance premiums, and home sales up to a certain dollar amount. For people filing singly, home sales with up to a $250,000 profit can be deducted and for married couples filing jointly, this amount goes up to $500,000.

Taxes can be complex and overwhelming. If you think you may be eligible for the deductions listed above, but aren’t sure where to start, contact Relate CPA today. We know the ins and outs of tax law and can help you keep the money you deserve. Tax time is quickly approaching – don’t wait, schedule an appointment today!