When it comes to sorting out your personal taxes it’s only natural for you to want to pay as little as possible. Some people are happy to be unscrupulous and fiddle their taxes. However, there are some perfectly legitimate and law-abiding ways to lower your tax bill, you just have to know-how when it comes to personal taxing.
This article will show you how you can lower your bill and stay on the right side of the law in 5 simple steps.
A few years ago, the IRS let the owner of a junkyard deduct the price of cat food from his bill. He was legally allowed to do this as it was a business expense. The food was deemed necessary as it encouraged feral cats to his junkyard. These cats helped keep snakes and rats well away.
If you have to buy pet food for a business reason, you can deduct it from your tax bill. Just make sure that it really is a business expense. For example, if your dog comes to work with you to help with mental health issues or therapy you can use this as an expense deduction.
Another crazy tip that can help you to lower your personal taxes is by having swimming classes that your doctor has prescribed you. However, in order to qualify for this, you will need to have an illness or disease that will benefit from exercising in a pool.
If you were to buy a few weight-loss aids that your doctor has prescribed for you, you can deduct the cost from your taxes. However, this is only the case if the aids are not covered by your medical insurance.
Savings For Teachers
If you’re a teacher it’s likely you’ve had to buy school supplies using your own money. It may seem as though no-one really appreciates the efforts you make to help the kids in your class. However, the IRS does. All qualified K-12 educators can take up to $250 from their tax bill for the materials they’ve paid for. This means that you can get some if not all of the money back via deductions. If you purchase anything for your class, make sure you keep the receipt.
If You go Back to School & personal taxing
College students get a few tax deductions. However, if you’re a little older and you go back to school you could get up to $2,000 a year off the first $2,000 on education. This has been put in place in an effort to encourage learning but if you’re on a higher income you won’t be entitled to it. Do check to make sure you know what you’re entitled to claim!
When you’re Job Hunting
If you have lost your job recently you might find that searching for a new position can be expensive. However, if you’re looking for work in the same field, you could get a few deductions. Itemise all of your expenses. If they exceed 2% of your gross income they can be deducted.
Consider accounting for your travel expenses, the cost of printing out your resumes, and anything else that’s relevant. Keep track of these too for tax season.
As you can see, the above tips are here to help you with your personal taxing. They can make your tax bill a little or even a lot lower without you worrying whether the IRS is going to come knocking. It is worth speaking to a financial expert to ensure that you’re making the most out of any possible deductions that you’re entitled to.
Have you got any other tips for when it comes to personal taxing? Drop these in the comments below.