Itâ€™s that season. Itâ€™s time for you to hate and love numbers all at the same time. Tax Season has descended upon you. You gather receipts, statements, and any other scraps of paper that can help you hold on to YOUR money. But have you thought of everything?
1. Claim your home expenses. If you have a business in your home, you can deduct home expenses (like mortgage payments, utilities, even garbage or household repairs). The catch is that it can only be what ever percentage your office space is compared to your home. So if your home is 1700 sq ft and your office space is an 8 x 8 space (64 sq ft) then you can deduct 3.7% if your household expenses.
2. Keep up with mileage accumulated for work related errands or meetings. The government has upped the allowance to 48.5Â¢ per mile which can quickly add up.
3. Membership fees are deductible as long as they are work related. That means signing up for online market research and job announcements can be deducted from your income.
4. Subscriptions can also be written off. Anything that is worked related (like domain name subscriptions) is another deduction you need to include on your return.
If you are using an accountant remember to take any expenses that you use for your home business (including cable if you do research through television programs) and ask if you can use a portion of them on your return. When it comes to filing taxes, a penny saved really can end up being a penny earned.