Today is the day that all taxes are due. So how do you digitize your taxes and claim your deductions? For starters, use online services like TurboTax. It makes filing extremely seamless. Here is a list of deductions that you should look into and take full advantage of:
1. Home Office Tax Deduction
The eligibility rules for claiming a home office vary, but remote workers and self-employed filers make sure you claim this break. You are also eligible to write off expenses that are associated with the portion of your home where you exclusively conduct business. These expenses include rent, utilities, insurance, and housekeeping.
2. Business Expenses
If you drive for Uber on the weekends or rent out your house on Airbnb, you could qualify as a business owner and should be filing a Schedule C tax form. As a general rule, freelancers can write off business-related expenses but they have to be necessary.
3. Student Loan Interest Paid
You can deduct up to $ 2,500 of student loan interest per return, per year. You can claim the student loan interest tax deduction as an adjustment to income. You don’t need to itemize deductions to claim it. Go to your student loan provider to access the forms and upload them on TurboTax.
4. Moving Expenses
Don’t be fooled. The moving expense deduction is no longer available in tax years 2018 – 2025 due to the Tax Cuts and Jobs Act (TCJA) but there are some exceptions to the rule. If you moved to a new location because of work and are a member of the military, you may qualify to use IRS Form 3903 to claim the cost of your moving expenses as a deduction on your federal income tax return.
5. Claim your Dependents
New tax laws allow you to claim a dependent credit, either $ 500 or $ 2,000 depending on the status of the dependent.
Don’t be late and remember if you need to file an extension, you can do so here.
The post The Best Way to Electronically File Taxes, Plus, Deductions You May Have Missed appeared first on Black Enterprise.
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