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About one percent of taxpayers receive an IRS audit notice in the mail each year. Most of these missives are little more than requests for additional information. Perhaps you made a math error or failed to include your social security number or to sign your return. But other notices are more accusatory. Perhaps you claimed an improper deduction. The fear of being audited or IRS problems causes millions of American taxpayers to abstain from claiming deductions they are entitled to. This can mean the difference between hundreds, even thousands of dollars on your next tax return. In this article we will discuss five ironclad deductions that every taxpayer can claim. Charity Work You cannot deduct the time you spend working for eleemosynary organizations, but you can deduct any of the expenses you incur that are related to that work. For example, if you drive disabled senior citizens to the museum once a week, you can claim the standard mileage deduction or any other cost of transit. Remember, even if you love giving, gas prices are expensive. A Good Samaritan can save hundreds of dollars in back taxes by claiming these legitimate deductions. Medical Travel If your total medical expenses exceeded 7.5 percent of your gross income, you can claim them as a deduction. This includes any cost of travel or parking that you had to pay at your doctor’s office or at the hospital. The total allowable tax deduction is about a quarter each mile, which might not sound like much, but it does add up. If you are forced to drive one hundred miles a week to see a doctor at the hospital, that’s twenty-five dollars! Entertainment and Equipment Costs If you are self-employed, it is possible to write off any expenses that are directly related to your work. For example, an actor can deduct the cost a new television, because he has to keep tabs on the competition. And a professional boxer can claim the cost of his gloves, trunks, and footwear. Home Office With more people working from home than ever before, home office deductions have become quite common. If you use a room in your home or apartment exclusively for work, you can deduct a portion of your mortgage payments or rental fees. You must be self-employed, which means the IRS should not receive any W-2s. If IRS agents discover that you have been working on the side, you will almost certainly receive an IRS audit. Disaster Losses Most taxpayers who have suffered through a national disaster are so preoccupied with getting their lives back together that they fail to claim disaster losses. But if you loss anything of value in a federal disaster area that is not complexly covered by insurance, you can claim it as a deduction. The aforementioned was but a small sampling of the many legitimate deductions taxpayers can claim. If you have any questions about what can be safely written off, it is best to contact an experienced tax advisor. These trained professionals are can help you reduce your total tax bill and avoid a tax debt. For more information about irs tax relief, tax relief, or tax solutions please visit Txmstr.com.
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