In order to get the largest possible refund check, it's important to take all legal tax deductions. As tax time approaches, it's critical to understand which tax deductions are allowable for each particular individual taxpayer. Filing taxes is likely to be a time consuming and confusing endeavor so it pays to be knowledgeable regarding tax matters.
Some taxpayers may decide it's not worth the time necessary to be on top of all the latest tax regulations added and revised every year. If a particular individual tax situation is rather complex, it may be best to hire a professional in order to get the maximum amount back on a tax refund check.
Tax Deductible Travel Expenses
Best tip here is to keep a mileage log so distances can be calculated accurately. This log book may also be used as evidentiary documentation to prove deductible expenses if audited. The distance traveled between two separate jobs is deductible, however driving from work to home and back is personal and therefore, not deductible. Some states also allow a deduction for the cost of travel to and from work related conferences and seminars. Other deductible travel expenses include hotels, airfare, taxi, parking, tolls, and even tips.
Tax Deductible Entertainment Expenses
Up to fifty percent of entertainment expenses are deductible if they are directly related to business, if business took place or was actually discussed during the meal or entertainment. Also, if business took place or was discussed immediately before or after the entertainment, such as taking a client to a baseball game after a meeting, this also qualifies as a business entertainment deduction. Keep accurate and detailed records of all business related meals or entertainment listing the date, place, amount, name and title of person entertained, reason for entertainment, and nature of business discussed.
Tax Deductible Medical Expenses
Keep on file all statements of medical expenses, records, and invoices which are not covered by medical insurance. Dental and health insurance premiums may be deductible. Costs not covered by insurance such as diagnosis, cure, mitigation, treatment, prevention of disease, and generally any costs involved in treatments for any part or function of the body. IRS Publication 502 provides all the necessary details and definitions of what constitutes a deductible medical expense.
As always, the IRS has specific guidelines and rules that must be followed in order to get the biggest refund check. This information is not intended to be a source of legal advice, and no information in this article should be considered or relied upon as legal, tax or financial advice on any specific matter. Never act upon general information on legal, tax or financial matters without seeking legal counsel regarding a particular situation. Check out the IRS website at www.irs.gov for more information.
Free tax refund calculator here.
Mark Oehlert - Mark has 50 years life experience (wisdom comes with age, right?) and over 28 years experience writing copy for ads, articles, marketing ...
Join the Conversation