April 15th is almost here and that means it’s time to do your taxes. Tax season is a stressful time for most people. Figuring out what can and can’t be deducted, slogging through complex tax software and sorting a year’s worth of financial records is difficult, boring and time consuming. But, if you want to make sure you’re getting the most from your return, it’s a necessary evil.
One of the most important things to determine is what kind of deductions you can take. Afterall, deductions can save you money and might even net you a nice refund from Uncle Sam. If you’re going to deduct expenses from your return, however, you’re going to need to ensure you can prove to the IRS that you actually spent the money the way you said you did. The last thing you need is an audit.
With all the paper and digital receipts you have, it might seem impossible to corral all your receipts for an entire year. Much less figure out which of those you can deduct from your taxes. But there are some receipts that should take precedence over others. Here are a couple expenses you might be able to deduct from your return that might save you some money.
In most cases, you are able to claim any personal medical expenses you accrued over the course of the year. Things you didn’t get reimbursed for such as premiums for medical, dental, long-term care, vision and Medicare insurance, for example, can be deducted if you used pre-tax dollars to pay for them. You might also be able to claim expenses like co-pays, the cost of eyeglasses, prescription medicine and even some services like acupuncture or chiropractic services.And it’s not just confined to monies spent directly on
And it’s not just confined to monies spent directly on health care. It might be possible to claim any transportation fees associated with receiving care. For instance, any tolls, parking fees, ambulance fees or even hotel expenses, might be valid deductions.
The cost of services like day care, camps, and afterschool programs can really add up. The upside is that you might be able to deduct these expenses from your return. And, if you use your home to provide these services, you might be able to take it further and claim the expense of things like a maid or even what you pay for a babysitter.
It’s important to note, however, that you can only claim these expenses if you and your spouse both work or if these expenses help you or your spouse find work. Your child also has to be under the age of 13 and you have to claim them as a dependent on your tax return.
If you are self-employed, then you should save any receipts that could even remotely be associated with your business. Any money you spend on materials, marketing, insurance or travel might qualify for deductions. It might also be helpful to keep track of your mortgage or rent payments, utility expenses and vehicle expenses. You might be able to deduct those from your return as well.
Keeping all of your receipts organized can make a big impact when it comes to filing your returns. Now that more and more receipts are delivered digitally, there are ways you can use this to your benefit to make organization a breeze. Filtroe can help you keep all of your digital receipts organized and tidy in one location. Sign up for Filtroe today and start getting your receipts under control just in time for tax season!