Revealed the Secrets of Handling IRS Deductions

IRS deductions are often the silver lining to the cloud of taxation. After all, you can save on your tax payments through these deductions. While some people are honest about claiming only deductions that apply to them, there are always others who resort to unscrupulous means to try and deduct their taxes. And some of the things that they use to justify their deductions are plain old silly, for instance a business woman who tried to get a deduction on her purchase of a $5000 mink coat citing it as a business expense. A man tried to pass a fallout shelter as a preventative medical expense. But wait it gets better, there was a businessman who hired an arsonist to burn his store and tried to get a deduction for the fees paid to the arsonist. Needless to say the IRS was quick in denying these deductions.

Deductions, if used carefully and honestly can help you to save on tax payments but if you try to go overboard with them, you can get into serious trouble. People are often confused about the deductions that apply to them, so here is a look at some of the common IRS deductions. If you are not sure which deductions apply to you, get in touch with a Dallas tax attorney to sort the situation out.

According to the IRS tax laws the following expenses are tax deductible:

Tools required for business (for most of use this would mean boots, protective gear required for work and clothes etc).

Union fees or the fees paid to be a member of a professional organization.

Taking an educational course related to your work.

Money spent to look for employment.

Expenses incurred on work related trips hat are not refunded by your employer.

Cleaning of lab coats and other uniforms for police officers, nurses etc.

Home office

There are several other work expenses that are tax deductible, it would be best to consult an accountant or a tax professional to advice you on the deductions that you can benefit from. Some other common tax deductibles include:

Student loan interest payments

7.5% of your total income in health benefits however get in touch with your tax professional to ensure the percentage because this rule is changed very often

Money spent for purchasing energy efficient cars.

Interest on mortgage and other secured loans.

Then there are also some lesser known deductions that are perfectly legal. Get in touch with your tax preparer to ensure that you do not miss out on the benefits of these deductions.

For teachers, expenses incurred to the tune of $250 that are not reimbursed by the employers are tax deductible.

College tuition paid for the entire year up to $4000.

Non-cash donations to charitable institutions; such deductions can include ingredients used for a charity bake sale or items needed for a school fundraiser.

Losses incurred due to natural disasters

Moving expenses associated with your job.

One way to find out about the deduction that you are eligible for is to research online, all the information that you need about taxes is available on the IRS site. If you file your tax returns with the help of an online ax preparation service this may be the most suitable option for you. Alternatively, you could contact a Dallas tax attorney to ensure that you are including the applicable deductions.

It is imperative to have a clear idea about what you can and cannot claim in deductions. Knowing about the intricacies of deductions can help you to save a lot of your tax payments. For instance, a farmer claimed a deduction for his African Safari because in his opinion it was purchased to learn more about wild animals, and the IRS accepted this deduction. On the other hand, the deduction claims of a male model who tried to write off his entire designer wardrobe were denied. Any ambiguity should be quickly sorted out in consultation with your Dallas tax attorney.