Navigating tax season can feel overwhelming, especially when you’re trying to determine which expenses qualify as deductions. The good news? Knowing what you can deduct can significantly lower your taxable income and maximize your returns.

Let’s break down some common tax deductions and offer tips for ensuring you take full advantage of them. For personalized service and to ensure you maximize your tax return: Click Here to book your free consultation now!

Common Tax Deductions for Individuals

Medical and Dental Expenses
You can deduct medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). This includes:

• Doctor and dentist visits
• Prescription medications
• Health insurance premiums (if not covered by your employer)
• Medical equipment (e.g., wheelchairs, hearing aids)

State and Local Taxes (SALT)
The SALT deduction allows you to deduct up to $10,000 of:

• State and local income taxes
• Sales taxes
• Property taxes

Mortgage Interest
If you own a home, the interest on your mortgage is deductible for loans up to $750,000. This is a valuable deduction for homeowners.

Charitable Contributions
Donations to qualifying charities can be deducted. This includes:

• Cash donations
• Non-cash contributions (e.g., clothing, furniture)
• Miles driven for charitable purposes

Education Expenses
If you’re pursuing higher education or professional certifications, you may qualify for deductions, such as:

• Tuition and fees
• Student loan interest (up to $2,500 annually)

Retirement Contributions
Contributions to qualified retirement accounts, such as IRAs or 401(k)s, may reduce your taxable income. Limits vary, so consult a professional to ensure compliance.

Job-Related Expenses (Self-Employed Individuals)
If you’re self-employed, you can deduct:

• Home office expenses
• Business travel and meals
• Office supplies and equipment
• Internet and phone bills (proportional to business use)

Common Tax Deductions for Businesses

Operating Expenses
Everyday business expenses such as rent, utilities, and office supplies are deductible.

Employee Salaries and Benefits
Wages, bonuses, and benefits like health insurance are eligible deductions.

Depreciation
Businesses can deduct the depreciation of equipment, vehicles, and other assets over time.

Marketing and Advertising Costs
Expenses related to promoting your business, such as social media ads, website development, and promotional materials, are deductible.

Professional Services
Fees paid to lawyers, accountants, or consultants for business-related services can be deducted.

Deductions That Often Get Overlooked

1. Home Energy Credits: If you’ve made energy-efficient upgrades to your home, you may qualify for credits that directly reduce your tax liability.
2. Child and Dependent Care Credit: This credit applies to daycare costs for children under 13 or dependent care for disabled family members.
3. Self-Employed Health Insurance Premiums: Self-employed individuals can deduct health insurance premiums for themselves and their families.

Avoid Common Deduction Pitfalls

While deductions can save you money, misreporting them can raise red flags with the IRS. For example:

• Claiming deductions without proper documentation
• Misclassifying personal expenses as business expenses
• Taking deductions that don’t apply to your situation

To ensure accuracy, work with a qualified tax professional who can identify opportunities and keep you compliant.

Why Work with Aviv for Tax Preparation?

Maximizing your deductions and avoiding audit risk requires expertise. At Springhill, we specialize in full-service tax preparation for individuals and businesses. Our team ensures that every eligible deduction is accounted for while safeguarding you from costly mistakes.

Maximize Your Returns and Avoid Audit Risk
Don’t leave money on the table or risk non-compliance. Work with Aviv at SprigHill to get the most out of your tax return.  Click Here to book your free consultation now!