April is getting closer, and that means that tax time continues to approach. (Because of the weekend, you have until April 17th this year, by the way.) However, there are some tax deductions you might not be aware of. From the phone excise tax credit to actual deductions, there are a few little-known tax deductions. Be sure that you don’t overlook them as well.
- Cell phone. Are you required to carry a cell phone for work? If so, part of the cost of the phone is probably tax-deductible. And minutes? You can likely also deduct a portion of the monthly bill (the portion you use for work, of course).
- Professional journal subscriptions. Keeping up to date is important. If you read trade magazines and journals that relate to your job, you might be able to deduct the expense on your taxes. I can deduct a portion of subscriptions I use to generate writing ideas and keep updated on the industries I blog about.
- Tools used in your business. If you have to buy tools to use on the job (and this can include computers), you can deduct a portion of the cost. If you use them for another year, you can use a depreciation deduction.
- Expenses related to charity work. You know about deducting donations to charity. But did you know you could deduct expenses directly related to charity work? If you drive somewhere on behalf of a charity, that’s deductible. If you buy items for a fund-raiser, that is deductible as well.
- Education. Education is deductible beyond the typical Hope and Life Long Learning credits. You can deduct expenses related to updating your job skills and knowledge. However, you should be aware that it is only eligible if the training is for your current job (not for a different or new job).
For more on taxes, visit the IRS Web site.