Tax Day in the United States has passed and the team here at Taxfyle are able celebrate another year of making taxes simpler for taxpayers and CPA’s everywhere. We should really have a ball drop or something next year for the office. We’d like to offer a few resolutions for the new tax season which will help you get ahead of next year’s tax returns.
New Tax Year Resolutions
First of all, we know that the tax year actually started on the first day of 2017. But, we thought “New Tax Year” had a fun ring to it.
Most of you know you should keep track of your wages and your business expenses. But here are some other things to track in order to get a jump-start on your 2017 returns.
Health Insurance Premiums and Co-Pays for your Medical, Dental, and Vision insurance are the easiest things to keep receipts for, but there are associated smaller things that are deductible too. The related costs of prescription meds, eyeglasses, and contacts are important to stay on top of.
Break a leg or sprain your ankle? Costs of crutches, wheelchairs, and related therapy are also deductible. You can log all of those expenses and receipts on your computer to add them up at the end of the year. Don’t forget that you can also deduct your medical mileage.
Work-Related Expenses and Travel
The IRS lets you deduct “Travel, transportation, meals, entertainment, gifts and local lodging related to work.” There are some hang-ups, though.
“Commuting Expenses” from work to home aren’t deductible under “travel,” and neither are “lunches with co-workers” for “meals.” Unfortunately for us, that means we can’t write off Taco Tuesdays.
Yet, something like a trip to the airport or another office across town definitely counts. Do you have a gig on the side like babysitting or driving for a ride-sharing service? Those are deductible as well. It’s important to keep track of those trips because that money can add up to hundreds of dollars. 2017’s rate for work-related trips allowed 53.5 cents/mile for business-related trips and 14 cents for charity trips.
With these tips, we’d like to wish everyone good luck this year with their taxes. Happy New (Tax) Year!
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.