We love helping you make or save money during tax time and previously discussed 5 Must Deduct Items for Your Business. This was chock full of deductions and credits for business owners and even the self employed. But what if you are a regular paycheck earning guy or gal? What if you need some extra help? To do just that, we have listed a few non-monetary deductions for your tax return in Houston (or anywhere) that just about anyone can take advantage of.
1. Mileage
For us, it’s a no brainer to write off your business related milage as a tax deduction. While this does not include the miles you drive daily to and from work, it does include others. This includes for items such as driving to business meetings, lunches, to pick up supplies, if you have to meet with a supplier, and a host of other business related tasks. Be aware that the IRS has unfortunately dropped the reimbursement rate for mileage from 57.5 cents for business miles in 2015 to 54 cents for business miles in 2016.
2. Donations on Your Tax Return
If you dropped off a trunkful or two to your local charity in order to help the community and clean out your home, you may be eligible for this deduction. Those who contribute more than $500 worth of non-monetary or cash contributions can fill out Form 8283 as part of their tax return. Charities who take donations and allow tax deductions for donations will give you a receipt for your records to hang on to.
Donation Deductions for Tax Returns in Houston:
– If you live in the area, below are a few such places you may donate to:
- Goodwill Donation Centers
- Purple Heart
- The Salvation Army
- Houston Children’s Charity
- Catholic Charities
- Houston Food Bank
- Habitat for Humanity
- Houston Area Women’s Center
- Memorial Assistance Ministries
- Covenant House
- Boys and Girls Club
- Even your local church is likely to have a tax exempt and donation eligible status
3. Tax Deductions for a Casualty, Disaster, or Theft Loss
We all know Houston is a prime target for floods, hurricanes, and other types of disasters. If you experienced a loss because of these or similar loss, you may be able to deduct these casualty and theft losses that are related to your home, household items, and automobiles. This is provided they were not fully covered by some type of insurance. The cost concerning the loss of these items must be estimated by any salvage value versus any insurance money or other reimbursement you received or will expect to receive. Those who wish to claim this deduction on their tax return should use Form 4684 Casualties and Thefts.
4. Retirement Account Losses
If you have a retirement account as traditional or Roth IRA and experience a loss, you may be able to deduct it. You can claim them as a miscellaneous itemized deduction, but only in some specialized cases. For example, Roth IRAs accounts must be closed, including those accounts that earned a profit. Those with a traditional IRA do not need to be closed to take the deduction, as they are treated separately. However, you must show a loss from your tax base to qualify for the deduction.
5. Volunteering Your Time and Talents
Did you know that on average, approximately 63 million Americans donate their time to charity each year? This accounts for almost 8 billion unpaid hours and $184 billion in unpaid wages. However, none of this time is allowed to be deducted on a tax return. However, you may deduct the mileage to drive to and from the place of donation, you can deduct the cost of clothing and supplies purchased for the task, and for any parking or tollway expenses.
Again, you must be volunteering your time for a tax eligible charity. While helping the little old lady down the street is great, it’s not eligible for a deduction on your tax return.
Tax Return in Houston
If you are having trouble with your tax return in Houston and need help finding deductions or in bookkeeping, contact us.