Deductions for Taxes

I found it shocking that many people did not know there are so many things they can deduct from their taxes. But then again…maybe it is because taxes are not taught in school. Instead we learn how to do taxes when we start to “adult” and have a “real” job.

       Below are different items that can be used as deductions.

(deductions are also known as write-offs)

Business Start Up:

If you are starting up a business then you can deduct up to $5,000 if it was started in that tax year. For example, I would claim this in 2020 when I file 2019’s taxes for Dillon’s business.

Travel:

If you have to go on work trips or travel to different place some expenses can be deducted as well. Things like meals, lodging, and transportation expenses (gas, mileage) can be deducted.

Advertising:

Any advertising cost you have paid you can claim. This could be business cards. Facebook or Instagram promotions, and any fees paid to middle men like PR agencies.

Vehicle Expense:

You can deduct your vehicle expenses! This includes things like gas used for work, insurance, maintenance, and yes, depreciation. You can also deduct for miles driven. For this you have to keep track of how many miles you drive for work and how many miles for your own personal time. Each year there is also a different tax rate for miles. For 2018 it is 54.5 cents per a mile. Parking fees/passes and tolls can also be added.

Home Office Expenses:

You can calculate this expense by finding out the square footage of your home office then times it by $5. Or you can use a 8829 Form to calculate and itemized expense list. Utilities that are used inside the home office like electric or water. It can also include cleaning, repairs, maintenance, and labor for repairs or maintenance.

Supplies:

This is pretty straight forward. Any supplies you had to buy out-of-pocket for your business or job. This can be things as simple as pens, paper, post-it notes, pencils, staples, highlighters etc.

Utilities:

People often forget about this category. However, to be fair I think it is a category most would not think of. If you use a personal phone as both a work and personal phone then you are also able to write off a portion of your phone bill.

Military:

For the military things like gas, mileage, haircuts, uniforms and anything else bought can be used as deductions.

College:

Going to college can be quite pricey. But the good news is you can deduct costs from college as well. Supplies like scantrons, pens, pencils, lab equipment, parking passes, etc. can be deducted.