Cracking the Code on the Most Commonly Missed Tax Deductions

Unless you’re an accountant, you’re probably not looking forward to tax season. But if anything can boost your motivation to churn out this year’s return, it is the prospect of a sweet refund.

Most people who work on their own taxes are familiar with common tax deductions and credits such as the child tax credit, dependent care credit, or medical expense and mortgage interest deductions.

But buried in the United States’ byzantine tax code are other credits and deductions that accountants have used to boost their clients’ savings — some overlooked, others quite odd. filing your taxes, it’s best to consult a trusted tax professional with questions about potential deductions. Here are some commonly missed tax deductions to be aware of.

Home Improvements

Tax savings generated from home improvements may provide extra incentive to invest in your property. A few examples of upgrades that could be written off in certain cases include:

• Energy-efficient upgrades such as installing new windows or insulation.
• Maintenance expenses such as lawn care if you use your home for a business you own.
• A fresh coat of paint if you operate your business out of a home office.

Pets

There are several instances in which the cost of taking care of your dog or cat can be written off. These could include:

• The expense of moving a pet if you are relocating for a job.
• When your pet is also a guard dog protecting your business.
• Cats that are used for pest control by a business.
• Service animals.

Health and Wellness

Some of the most commonly missed tax deductions and credits in the code can relate to personal health expenses. For example:

• If your doctor recommends swimming as a form of therapy for a chronic condition, you may be able to write off the cost of installing a swimming pool.
• Clarinet lessons for children can be written off if they have been prescribed by a doctor to correct a misaligned bite.
• Other doctor-ordered self-improvements — such as quitting smoking or losing weight — may also cut your tax bill.
• And that sports camp you sent the kids to last year? That could qualify as a deduction if it was the primary source of childcare and both parents work full-time.

Before you file your taxes, talk to your CPA about potential tax deductions. Did you join The Great Resignation last year? If you’re newly self-employed, learn more about managing your taxes — and your insurance.

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