When filing your taxes, you may be unaware of all the deductions you're entitled to. This is where tax preparation services can come in handy. They can help ensure you get the most out of your tax return by taking advantage of every deduction available. Some of the most common deductions that tax preparation services can help you with include the following:
1. Home Office Deduction
If you work from home, the home office deduction can be a significant way to reduce your tax liability. However, knowing this deduction's specific requirements and limitations is important. First, the home office must be used exclusively for business purposes; it can't also serve as a guest room or child's playroom.
Second, the size of the deduction is limited to the proportion that the home office represents of the entire house. And finally, there are strict record-keeping requirements in order to qualify for the deduction. Tax preparation services will help you meet these criteria, allowing you to leverage the home office deduction to enjoy a much-needed reduction in taxes owed.
2. Work-Related Travel Expenses
One deduction that many people don't know about is work-related travel expenses. If you have work-related travels, you may be able to deduct your travel expenses from your taxes. This may include airfare, hotels, car rentals, and meals. To qualify, your travel must be temporarily away from home and connected to your job.
So, if you're a salesperson who travels for work or a business owner who takes clients out of town, you may be able to deduct your travel expenses from the tax you owe. Ensure you talk to your tax preparer about whether your work-related travel expenses are deductible.
3. Business-Related Meals and Entertainment
Did you know that business-related meals and entertainment are also tax deductible? This includes any meals you have with clients, potential customers, or business partners. It also consists of any entertainment expenses that you incur while doing business. For example, if you take a client to a baseball game or a concert, the cost of the tickets is 100% tax deductible. So be sure to keep track of all your business-related expenses to maximize your deductions come tax time.
Taking advantage of these and many other tax deductions can minimize your tax liability and keep more of your hard-earned money in your bank account. So be sure to talk to tax preparation services about all the deductions you may be entitled to. Leveraging all the assistance you can get when filing your taxes can ensure it isn't as daunting as it used to be.
For more info, contact a company like Hough & Co CPA.