When it comes to taxes, deductions and exemptions can be tricky. There is an infinite amount of possibilities for deductions, as long as you place in certain brackets – but first, what are those deductions and what are those brackets?
The best person to speak to for this information would be your accountant. As the trusted eye over your finances, they know your situation best and will be able to help you answer these questions! However, there are 2 deductions we can assure you, no matter your situation, you can not claim on your taxes:
You cannot claim your clothing as a deduction if there is any possibility you can wear it outside of work. Yes, you might need to purchase a new suit or dress for a work event or a conference, but the IRS does not see this as a business expense. However, if your work falls in an industry like the healthcare field, where scrubs are required attire, this is a possibility of deduction.
Many claim that their business relies on them to look a certain way, making their gym membership a reasonable business expense – but the IRS disagrees, calling this one a personal expense.
There are many deductions and exemptions that can apply to you, and consulting with an expert is the best way to figure that out. Give Hacker Accounting a call to discuss! (602) 375-5251.