Asked by: Natalia Farrell | Last update: May 28, 2025 Score: 4.6/5
(53 votes)
You can deduct these expenses whether you take the standard deduction or itemize:
Alimony payments.
Business use of your car.
Business use of your home.
Money you put in an IRA.
Money you put in health savings accounts.
Penalties on early withdrawals from savings.
Student loan interest.
Teacher expenses.
What debt can you write-off on taxes?
To be deductible, a debt must be a bona fide loan with an expectation of repayment and may include interest and a promissory note. The debt must be 100% worthless before it can be deducted. Documented efforts to collect the debt must be made, such as letters, invoices, and phone calls.
What utilities expenses are tax-deductible?
These can include, but are not limited to, electricity, gas, water, internet, and phone services. The cost of these services can often be written off, or deducted, from a self-employed individual's taxable income, thereby reducing their overall tax liability.
How can I increase my tax refund?
4 ways to increase your tax refund come tax time
Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
Explore tax credits. Tax credits are a valuable source of tax savings. ...
Make use of tax deductions. ...
Take year-end tax moves.
What expenses are 100% deductible?
What Is a 100 Percent Tax Deduction?
Furniture purchased entirely for office use is 100 percent deductible in the year of purchase.
Office equipment, such as computers, printers and scanners are 100 percent deductible.
Business travel and its associated costs, like car rentals, hotels, etc. is 100 percent deductible.
ACCOUNTANT EXPLAINS: How to Pay Less Tax
19 related questions found
How to get a $10,000 tax refund?
CAEITC
Be 18 or older or have a qualifying child.
Have earned income of at least $1.00 and not more than $30,000.
Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children.
Living in California for more than half of the tax year.
What are good tax write-offs?
If you itemize, you can deduct these expenses:
Bad debts.
Canceled debt on home.
Capital losses.
Donations to charity.
Gains from sale of your home.
Gambling losses.
Home mortgage interest.
Income, sales, real estate and personal property taxes.
What gives you a bigger tax refund?
You can increase the amount of your tax refund by decreasing your taxable income and taking advantage of tax credits. Working with a financial advisor and tax professional can help you make the most of deductions and credits you're eligible for.
How to get $7000 tax refund?
Who can claim the Earned Income Tax Credit (EITC)?
Have investment income of less than $11,600 in tax year 2024.
Have a valid Social Security number by the due date of your 2024 return.
Be a U.S. citizen or resident alien for the entire year.
Not file Form 2555 (foreign earned income)
Is it better to claim 1 or 0 on your taxes?
By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.
What home expenses can you write off?
Deductible house-related expenses
Insurance including fire and comprehensive coverage and title insurance.
The amount applied to reduce the principal of the mortgage.
Wages paid to domestic help.
Depreciation.
The cost of utilities, such as gas, electricity or water.
Most settlement or closing costs.
Can I claim my water bill on my taxes?
If you own or rent a brick-and-mortar business or office space, you can deduct 100% of the necessary utilities such as gas, electricity, trash, and water. For those claiming the regular home office deduction, you can only subtract the portion used for business.
What does IRS consider utilities?
Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, residential telephone service, cell phone service, cable television, and Internet service.
How to get the most out of your tax return?
Identifying and claiming tax deductions will reduce your taxable income. Exploring and claiming tax credits can significantly reduce your tax bill or increase tax refunds. Maximizing contributions to retirement accounts can increase tax benefits. Consider adjusting withholding to optimize tax refunds.
What debts can offset my tax refund?
Past-due child support;Federal agency nontax debts;State income tax obligations; or. Certain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren't paid).
What is a tax write-off on a car?
Section 179 is a provision of the US tax code that allows businesses to deduct (write-off) the full purchase price of qualifying vehicles and equipment in the year of purchase, rather than depreciating them a little at a time over several years.
How do I know if I qualify for tax credits?
You're at least 18 years old or have a qualifying child. Have earned income of at least $1 and not more than $31,950. Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse/RDP, and any qualifying children. Live in California for more than half the filing year.
What disqualifies you from earned income credit?
You can't claim the EIC unless your investment income is $11,600 or less. If your investment income is more than $11,600, you can't claim the credit. Use Worksheet 1 in this chapter to figure your investment income.
How to easily calculate tax refund?
Simple Summary. Every year, your refund is calculated as the amount withheld for federal income tax, minus your total federal income tax for the year.
What can I write off on my taxes?
And don't forget startup, advertising, and retirement plan costs.
Retirement Plan Contributions Deduction. ...
Self-Employment Tax Deduction. ...
Home Office Deduction. ...
Health Insurance Premiums Deduction. ...
Internet and Phone Bills Deduction. ...
Meals Deduction. ...
Travel Deduction. ...
Vehicle Use Deduction.
How to get the most tax refund as a single person?
To avoid that, here are some strategies to ensure you get the largest refund possible in 2024:
Select the right filing status.
Don't overlook dependent care expenses.
Itemize deductions when possible.
Contribute to a traditional IRA.
Max out contributions to a health savings account.
Can I claim myself as a dependent?
No.You can't claim yourself as a dependent on taxes. Tax dependency is applicable to your qualifying dependent children and relatives only.
What expenses are 100% tax deductible?
Advertising and promotion. The cost of advertising and promotion is 100 percent deductible. ...
Bank fees. Having separate bank accounts and credit cards for your business is always a good idea. ...
Business meals. ...
Business insurance. ...
Business use of your car. ...
Contract labor. ...
Depreciation. ...
Education.
How much can I claim without receipts?
$300 maximum claims rule
This rule states that if the total of your work-related expenses is $300 or less (not including car, travel, and overtime meal expenses, which can be claimed separately), you can claim the total amount as a tax deduction without receipts.
What is the most frequently overlooked tax deduction?
Homeownership expenses, medical expenses, and charitable giving are common deductions. Some deductions, such as unreimbursed job expenses and tax preparation fees, were eliminated, but gambling losses and student loan interest remain deductible.