Come tax season, and every filer is so busy in finding deductibles expenses for themselves. Why? Because these can significantly reduce your tax bill. Despite, their advantages, there are some deductions that are just not great, and you should not claim them. Should you do this, you will be violating IRS guidelines and will have to pay penalties and interest later on. Discuss the matter with your chosen accountant Celebration FL, and they will guide what you should claim and what you should not. For right, we will briefly go over the main ones.
Home insurance premiums cannot be deducted
Your home insurance policy cannot be deducted. Despite this, you should buy it because it covers you and offers you peace of mind. Should an unfortunate incident take place, your finances will not be a worry at least.
As per some tax laws, you can still deduct PMI or private mortgage insurance in some cases. This is the insurance, which lenders require if the down payment does not exceed a certain value. PMI premiums are deductible, if you itemize them in Schedule A. You are applicable for this only if your income meets certain requirements and you bought your policy within a specific time period. Your chosen accountant Celebration FL will provide you more information about this.
Telephone bills cannot be deducted
You may be using your home landline for business purposes, but you still cannot deduct it. The IRS will still regard it as a personal expense. However, if you have made nay long distance calls, you can still deduct those, provided they are for business purposes only.
Should you be an employee, this deduction is claimed on Schedule A. and if you are self-employed, do this on Schedule C or C-EZ.
And buy the way, if you get another landline and use it solely for business purposes, you can deduct the whole costs that arise.
Communing costs cannot be deducted
The expenses incurred in travelling to work from your home are not a deduction whether you are driving by yourself or taking public transportation. No matter what the distance, you still cannot deduct this. But always consult your accountant in Celebration, FL.
But what you can deduct is the commuting costs that arise if you work at two different locations in the same day. Whether the employer is the same or not, the IRS will regard it as a deduction. Moreover, if you are travelling for a business meeting, you can deduct these costs. For self-employed individuals, these deductions have to be claimed on Schedule C or C-EZ. If you are an employee, these costs must be greater than 2% of your AGI. Only then can you claim them as a deduction.
Pet expenses are not deductible
Pet expenses are not deductible and you cannot claim them as a dependant. But if you have a dog, you can deduct the expenses incurred in buying, training and taking care of it. For this, your dog will have to be of assistance to disabled people.
If you need more information about our Celebration, FL accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.