Every Dollar Counts for Your Business! Profit Wise Accounting Tax and Marketing Shares Some Tax Deductions of Which You Might Not be Aware!
- You have the option of deducting sales taxes or state income taxes off your federal income tax. Even if you paid state taxes, the sales tax break might be a better deal if you made a big purchase like a car.
- If you’re self-employed and responsible for your own health insurance coverage, you may be able to deduct 100% of your premium cost. This deduction is taken off your adjusted gross income rather than as an itemized deduction.
- Qualified K-12 educators may deduct up to $250 for materials.
- Out-of-pocket expenses for charitable work qualify for Charitable Contributions. For example, if you prepare food for a charity fundraiser, you can deduct the cost of the ingredients you used to prepare the meal. You can also deduct the cost of a babysitter as a charitable contribution when you pay a sitter to watch the kids while you volunteer to work for no pay for a recognized charity.
- The tax code offers a number of deductions geared toward college. The Lifetime Learning credit can provide up to $2,000 per year, taking off 20 percent of the first $10,000 you spend for education after high school in an effort to increase your education. This phases out at higher income levels, but doesn’t discriminate based on age.
- The bad news about being self-employed: You have to pay 15.3% of your income for social security and Medicare taxes. But … you can deduct the 7.65% employer portion off your income taxes.
Profit Wise strives to completely change the client-accountant relationship. They knew that in order to make companies profitable, bookkeeping, tax coaching and marketing must all work together toward a common goal. Their mission is to help every business they partner with become debt free and more profitable. Through a unique, hand-picked team based on talent and passion, Profit Wise serves as the accounting firm for more than 400 companies.
1 in 35 taxpayers will get a letter from the IRS each year. Many taxpayers will receive a notice from the IRS or State. Partner with Profit Wise Accounting Tax and Marketing to help you be prepared.
Ashleigh Heinz, Business Development/Accountant
Profit Wise Accounting Tax and Marketing