As March comes in like a lamb and may go out as a lion, that leaves plenty of days in between for getting your paperwork to do your tax filing this month. There isn’t much you can do about what the income is. That is a given. But a bit of extra effort to learn about allowable tax deductions and credits can make a big difference on your tax return. Here are a few little-known tax deductions and tips, and if you really want to be sure you take advantage of everything possible, talk with your tax advisor and preparer.
1. Investment fees and expenses. There are several expenses you could incur regarding your investments that you can deduct– for example, the rental of a safety deposit box to hold valuable papers, brokerage fees, attorney fees for services needed to collect taxable income, costs to replace lost security certificates, investment counseling fees, investment management software and online services, and transportation costs to your brokerage or financial advisor’s office.
2. Correctly report basis of stock. If you had your dividends reinvested, don’t forget to add that amount when calculating gain/loss on a sale. You already paid tax on those dividends, so you don’t want to pay tax on it again as a gain.
3. Charity deductions. It isn’t just what you pay to a charitable organization that you can deduct. You can also deduct expenses if you volunteer. You can deduct a standard mileage rate for travel, parking costs, uniform costs, and other expenses related to doing volunteer work.
When you count on us at Cathy E. Parker, E.A. Bookkeeping & Tax Service to do your tax filing, you can be sure that we’ll ask all the right questions to ensure that you are taking every legitimate deduction and credit possible. We’ll also help you with tax planning, so you can take advantage of as many as possible with next year’s tax filing.