As the year winds down and we enter the last fiscal quarter, it’s time to start thinking about your 2015 taxes. It is very important to know what to report to ensure you pay the correct amount. This means being aware not just of what is taxable income, but also what is eligible as write offs. We’ve identified a few write offs that people frequently forget to take advantage of.
Job Hunting Costs
If you were on the job hunt in 2015, you may be able to write off some of your expenses associated with the search. Itemized car fare, hotel costs, and a per-mile allowance may all be included in your deductions for the year. However, this is not allowed if you were searching for your first job, or if your expenses were less than two percent of your adjusted gross income.
Losses Due to Theft or Accident
If your home suffered damage in this summer’s monsoons, you can deduct the costs from your 2015 taxes. This includes water and tree damage, as well as the cost of repairs. The same goes if you were in a car accident — if it wasn’t covered by your insurance, it should be deductible.
Large donations to single organizations are fairly easy to remember to include when it comes time to fill out your tax forms, but chances are those are the only donations you’ve made. Drugstores, clothing retailers, and other businesses solicit donations for major philanthropies throughout the year and during the holidays. If you contributed, those are eligible as well. Even if you just rounded your change, those donations will add up. Save your receipts until tax season.
The Costs of Caring for a Parent
Most people think only of children when it comes to dependents and tax credits, but if your parent qualifies as your dependent, there are some more write offs for you to take advantage of. The costs associating with caring for a dependent parent, including nursing homes or hospice care, can deduct from your taxes as long as the caregiver receives either a W2 or a Form 1099-MISC.
These are just a few of the many write offs you may be missing out on. To be sure that you’re getting the most from your taxes, give Hacker Accounting a call at 602-375-5251.