5 tax deductions to boost your tax refund!
Bad debt expense
Does someone owe you a bona fide debt? Did you pay a contractor to perform work, but he or she did not? If you tried to get your money back, the Internal Revenue Service (IRS) would allow you to take a nonbusiness bad debt deduction on your tax return. A nonbusiness bad debt is a debt that is not in connection with a taxpayer’s trade or business on the tax return.
Educator expense
If you are a grade K-12 educator, including counselors, principals, and aides, you may be able to deduct $250 for unreimbursed expenses (books, supplies, equipment, etc.) you incurred during the school year.
Lifetime education credit
If you are an individual attending trade school, you may qualify for the lifetime education credit. This credit is made available for those who paid for qualified tuition and related expenses for eligible students enrolled in an eligible educational institution. This includes courses to improve your job skills or acquire new skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return.
K-12 State school expense (Louisiana) tax deduction
In the state of Louisiana, individuals can take a deduction for amounts paid for dependents who are enrolled from kindergarten to 12th grade. These amounts include tuition, school books, fees, materials, and uniforms. The amount can reduce an individual’s state tax liability.
Depreciation
If you are a business owner or own real estate, you may be able to take a deduction for depreciation. For example, if you purchase real estate to rent to tenants, you can take an annual amount to reduce your tax burden. This is also the case with equipment purchases as well.
Kemberley Washington, CPA is a best seller author, news contributor and owner of Washington CPA Services, LLC. She contributes to her blog Kemberley.com and 21daysof.com.