Business Expense Tax Deductions
Did you pay for any business-related expenses last year? If so, you are in luck! Oftentimes, these out of pocket work-related expenses are tax deductible. If this applies to you, you are able to claim the allowable expenses on your Schedule A.
We have four tips to help you understand if this pertains to you.
1. You are only able to deduct expenses that are considered ordinary and necessary to your work as an employee. This means that the expense is considered common, accepted, appropriate and helpful within your industry and business.
2. Did you spend any of your money on the following in the last year?
- Required work clothes or uniforms that are not appropriate for everyday use
- Supplies and tools you use on the job
- Business use of your car
- Business meals and entertainment
- Business travel away from home
- Business use of your home
- Work-related education
If so, you may be able to deduct.
3. Make sure to keep records! You must be able to track these expenses throughout the year.
4. If you are a K through 12 educator, you may be able to deduct up to $250 of certain applicable expenses from the past year. Publication 529 has more detail about these expenses.
Did you have any deductible expenses this past year? Which tip was most helpful?