Though next year’s tax season is quite a few months away, many conscientious people are already getting a head start on tracking and documenting items so they can avoid the wild rush toward tax day.
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If you’re one of those people, odds are, you’re tracking your deductibles — or the items you can treat as a “tax write off” — very carefully. However, you might not have a complete picture of those “write offs.” In fact, you might be quite surprised to find what could count as a deductible.
To help you get a more complete picture of more things that you can regard as tax write-offs, GOBankingRates talked to some tax professionals. Here a look at what the experts say you may have forgotten to include in your deductibles.
Home Office Spaces
According to Nicolette Davicino, a certified financial planner (CFP) and the senior paraplanner of Armstrong, Fleming & Moore, Inc., many people already know about certain home office write-offs, but they might not be aware of a pretty significant one.
“If you have a dedicated space in your home for work, you can potentially write off a portion of your rent/mortgage, utilities and even repairs,” she said.
Professional Development Courses
Though professional development courses aren’t typically tax-deductible for regular employees, small business owners or self-employed people can actually write off online or in-person courses as business expenses, said Davicino.
“Business meals are also a popular deduction, but you should make sure it’s a work focused meeting and well documented before writing off 50% of the meal, including tax and tip,” she added.
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Using Your Car for Business
If you’re self-employed, you might be happily surprised to discover that you can deduct expenses related to your car, whether it’s in your name or your business’ name.
You certainly wouldn’t be alone. Zaher Dehni, the CEO at Taxfully, shared that his clients are often shocked when they hear it for themselves.
“You can either deduct mileage — $0.65 per mile in 2024 — or actual expenses like gas, maintenance and insurance. For instance, if you drive 5,000 miles a year for business, that’s a $3,250 deduction,” he said.
Carefully documenting your expenses is essential here. Dehni suggested keeping all your receipts for fuel and maintenance, as well as using a mileage tracking app to stay organized.
Health Insurance Premiums
Paying health insurance premiums can be one of the more burdensome parts of being self-employed. Dehni said that you can actually treat them as a deduction, especially if you’re paying out of pocket.
Be sure to keep all of your premium statements and payment confirmations as documentations. “It’s straightforward but essential,” he added.
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This article originally appeared on GOBankingRates.com: I’m a Tax Expert: 4 Things You Didn’t Know Could Be Tax Write Offs
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