Credit card interest
Are you a business owner? Did you make purchases on a credit card for qualified business expenses? While personal credit card interest is not deductible, you can deduct interest if your credit card was used for qualified business expenses.
Bad debt expense
Does someone owe you a bona fide debt? If you tried to get your money back, the Internal Revenue Service (IRS) will allow you to take a nonbusiness bad debt deduction on your tax return. A nonbusiness bad debt is a debt that is not in connection with a taxpayer’s trade or business on the tax return.
If you are a grade K-12 educator, including counselors, principals and aides, you may be able to deduct $250 for unreimbursed expenses (books, supplies, equipment, etc.) you incurred during the school year.
SEP IRA and IRA deduction
An IRA is a great tool to save for retirement. The best thing is – if you didn’t get a chance to open an IRA before December 31st, the IRS will allow you to contribute up to the tax deadline, which is April 15th.
Searching for a job
If you were in the market searching for a job last year, you may be able to write off some of those expenses on your tax return. The IRS allows individuals to reduce their tax burden by deducting job search expenses for a new job within the taxpayer’s current occupation.
Mileage for charity and medical
Did you volunteer for your favorite charity? Did you have to travel to your doctor’s office for checkups and procedures? The mileage traveled can be deducted on your tax return.
Are you starting a new job or pursuing a self-employment opportunity? You may be able to deduct qualifying moving expenses. This includes airfare or mileage and the cost of packing and transporting household goods.
Charitable contributions can be in the form of cash and property. These donations require a record of substantiation such as a bank record or statement from the charitable organization. Non-cash donations should be deducted at fair market value.
American Opportunity Credit
The IRS will grant you a tax credit for the first four years of postsecondary education. Qualified expenses include tuition, fees, equipment, supplies and course materials incurred during the taxable year. The best thing about this credit is it may be refundable!
Remember, your choice, your future!
Kemberley Washington is the author of the Ten Commandments to a Financial Healing. She is a CPA and professor at Dillard University.