Don't Overlook These Uncommon Tax Deductions
As tax season approaches, it's important to make sure that you're taking advantage of every possible tax deduction. While many people are aware of the most common deductions, such as mortgage interest, charitable donations, and medical expenses, there are many uncommon deductions that often go overlooked. Here are some unconventional tax deductions that could save you money on your tax bill.
1. Unreimbursed Employee Expenses
If you're self-employed or work as an employee and have expenses that your employer doesn't reimburse you for, you may be able to deduct those expenses on your taxes. These could include anything from travel expenses to office supplies to job-related education. To qualify for this deduction, your unreimbursed expenses must be more than 2% of your adjusted gross income.
2. Moving Expenses
If you moved to a new home because of work-related reasons, you may be able to deduct your moving expenses on your taxes. To qualify for this deduction, you must meet certain distance and time requirements. The new home must be at least 50 miles farther away from your old job than your old home was, and you must work full-time for at least 39 weeks during the 12 months after your move.
3. Home Office Deduction
If you work from home, you may be able to deduct a portion of your home expenses, such as rent, utilities, and maintenance, as a home office deduction. This deduction applies if you use a part of your home regularly and exclusively for business purposes.
4. Gambling Losses
If you enjoy gambling, you may be able to deduct your losses on your taxes. However, you can only deduct losses up to the amount of your winnings. To claim this deduction, you must keep accurate records of your losses and winnings.
5. Sales Tax Deduction
If you live in a state with no income tax or have a large purchase, such as a car or boat, you may be able to deduct your sales tax on your taxes. To claim this deduction, you must itemize your deductions rather than take the standard deduction.
6. Medical Marijuana
If you live in a state where medical marijuana is legal, you may be able to deduct the cost of your medical marijuana as a medical expense on your taxes. To qualify for this deduction, you must have a prescription from a licensed physician.
7. Volunteer Expenses
If you volunteer for a qualified charity, you may be able to deduct your volunteer expenses, such as transportation, as a charitable donation on your taxes. To claim this deduction, your expenses must be unreimbursed and directly related to the charity work.
8. Bad Debt
If you are owed money that you can't collect, you may be able to deduct the amount as a bad debt on your taxes. However, you must have made a good faith effort to collect the money.
9. Pet Expenses
If you have a service animal, such as a guide dog, you may be able to deduct your pet expenses, such as training and veterinary care, as a medical expense. To claim this deduction, you must have a physical or mental impairment that the service animal helps treat.
10. Job Search Expenses
If you're looking for a job in the same field as your current or previous job, you may be able to deduct your job search expenses, such as travel and resume preparation, on your taxes. To qualify for this deduction, your expenses must be more than 2% of your adjusted gross income.
- Don't overlook these uncommon tax deductions.
- Make sure to keep accurate records and read the IRS guidelines carefully.
- You could save money on your tax bill and pay less in taxes.
In conclusion, as you navigate the complex world of tax deductions, it's important to remember that there are many uncommon deductions that could save you money on your tax bill. These deductions include everything from unreimbursed employee expenses to pet expenses to medical marijuana expenses. Make sure to keep accurate records and read the IRS guidelines carefully to take advantage of all possible tax deductions. By doing so, you could save money on your tax bill and pay less in taxes.