As the April 15th tax deadline approached, many experts in the tax preparation industry are giving out some useful tax tips and tax advice to help tax payers make the most of any potential tax refund. With the somewhat complex tax code, there are many tax deductions which are often overlooked.
According to Jackson Hewitt Tax Service, the nation’s second largest tax preparation firm, taxpayers should be reminded to take advantage of all the tax credits and deductions to which they are entitled. Often overlooked by many are unreimbursed job related expenses. Taking a deduction for expenses, you may not have considered, related to you job, could lead to valuable tax deductions that can significantly increase the size of a refund or at least decrease the amount owed.
“There have been more than 15,000 changes to the tax code since 1986, and most taxpayers simply aren’t aware of all the deductions available to them,” said Mark Steber, chief tax officer of Jackson Hewitt Tax Service. “A trusted neighborhood tax professional can help assure taxpayers are taking advantage of every deduction possible.”
Jackson Hewitt has a proprietary Deductions@Work program which is designed to assists taxpayers in identifying the occupation-related tax deductions available to them. According to the company, the program reviews more than 50 of the most common occupations and lists the unique deductions that may be available to professionals.
A number of examples are provided below of typical tax deductions based on some common occupations. Many of these deductions may also apply to a number of other professions. In addition to in person tax preparation, many online tax programs can also help you uncover some job-related deductions which may apply to your profession.
Construction Worker job related tax deductions could be:
– Dues for trade associations or unions
– Safety equipment such as steel-toed shoes or boots
– Specialized equipment or tools that are replaceable within one year
– Insurance premiums for protection against liability or wrongful acts
– The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear (for example, specialized coveralls, hard hat, work gloves, safety shoes and goggles)
– State or local government regulatory fees, licenses or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing
– Subscriptions to trade journals related to your work
For someone working as a Daycare Provider, tax deductions are available for things like:
– Work-related supplies that you provide, such as markers, crayons, diapers, and wipes
– Fees for licensing/bonding
– Liability insurance
– The cost and upkeep of uniforms if they are required for work and not suitable for everyday wear
Typical Tax deductions for members of the Military:
– Professional dues (but not dues paid to an officers’ club or a noncommissioned officers’ club) and subscriptions to professional journals
– Cost and cleaning of military battle dress uniforms (including rank insignia, medals, accoutrements, epaulets and swords) and reservists’ uniforms if you cannot wear them off duty
– Moving expenses if on active duty and the move is based on a permanent change of station order (PCS order)
– Travel, meals (with limitations), mileage and laundry expenses if incurred while traveling away from home (for example, to perform authorized drills and training duty)
– For military travel deductions, “home” is your permanent duty station and may not necessarily be where you or your family live
– Job-related training
Office Worker job related tax deductions:
– Dues for professional associations
– Job-related equipment or supplies that are replaceable within one year
– Subscriptions to publications and journals related to your work
– State or local government regulatory fees, licenses or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing
Additional information regarding which deductions are available for a given profession, can be found online by visiting the Jackson Hewitt’s Online Resource Center at www.jacksonhewitt.com.