Tax Refunds & Advice

Starting a business changes your tax situation. You are now in charge of your personal return, as well as that for your business. But don’t be scared, this is something that millions of people deal with every year. There are many ways to better your situation, and finding business tax deductions is a good start. Simply put, the more deductions you find the less money you are going to owe in taxes. And that is what you want, right?

Here are three recommendations for finding business tax deductions:

1. Always keep your eyes open. Those who miss deductions are the people who are not looking for them. If you are always thinking about the next deduction there is a good chance that you will find them more often.

2. Seek them out. Don’t sit back and think that deductions are going to come to you. Buy office supplies when you need them, track mileage if you are visiting a client, and think about creative ways to increase the number of deductions you can take advantage of.

3. Ask your tax professional for guidance. A professional can give you a long list of business deductions that you may qualify for. To go along with this, he can tell you how to best take advantage.

Believe it or not, business tax deductions are out there. And not only are they out there, they are available in large numbers. You should do whatever it takes to increase your deductions and lower your tax liability. This will make you a happy person when it comes time to file your returns. 

Are you looking for any and every tax break imaginable? If not, you should be. The more tax breaks you find the less money you will owe. And that is what you want, right? With so many common tax breaks there is no good reason to pass any of them by. They are well known, and you can find plenty of information on them as long as you know where to look.

Here is a list of common deductions and credits that will lower your tax liability:

1. Alimony
2. Child care
3. Mortgage interest
4. Education credits
5. IRA’s
6. Earned income credit
7. Student loan interest
8. Relocation expenses

How many of these deductions or credits do you qualify for? Remember, you can take advantage of many of these; there is no restriction. The only problem you may face is determining whether or not you qualify. If you are unsure it is better to find the right answer than to guess. You don’t want to use one of the above just to learn that you were not eligible. The same holds true if you decide against one that you could have taken advantage of.

These common tax breaks may or may not work for you. If you hire a tax professional he can give you information on the above, as well as any others that you may be able to use. One deduction or credit is better than none at all. By using them you ensure yourself of owing less taxes. 

With deductions you have the ability to reduce your tax liability. You have two options for taking advantage of deductions: you can use the standard deduction or you can itemize. If your itemized deductions will be more than the standard deduction you should choose this option. If not, the standard deduction will do the job just fine.

Here is all the information you will need if you are interested in using the standard deduction:

Filing Status

Single: $5,700
Head of Household: $8,350
Married Filing Jointly: $11,400
Married Filing Separately: $5,700
Qualifying Widow: $11,400

If Blind: $1,100 for married filing separately, married filing jointly, or widow); $1,400 for single and head of household filing status.

If age 65 or older, you will receive an additional amount: $1,100 if married filing jointly, married filing separately, or widow; $1,400 for single and head of household filing status

So what type of deductions are you going to use the next time around? The standard deduction is a great way to lower your liability, but you only want to use it if your itemized deductions would not be the greater of the two amounts. With the information above, you should have a better idea of which deduction strategy will work best for you.