Tracking Your Tax Deductions

Tax extensions can be more than just a last minute save option. You’re familiar with the fact if something were to unexpectedly happen before your tax deadline, you can e-file an extension for up to six months of extra time. You also know that if you complete your tax form before the extended date, you can file as soon as you like. But how about using your tax extension strategically? With all that extra time, another way to use it could be to discover new deductions you qualify for.

As stated by the IRS, miscellaneous deductions can cut through your taxes. These deductions can be a number of things like expenses you pay for in your line of work. To claim these costs, you have to itemize your deductions; this is a bit different from claiming standard deductions. And it’s possible to pay less taxes if you itemize.

Here are some tax tips from the IRS about deductions that can help reduce your taxes:

Deductions With Limits
Most miscellaneous costs can only be deducted if the sum is greater than two percent of your adjusted gross income (AGI). These expenses can include

• Job search expenses
• Dues paid towards a Union
• Certain work clothes or uniforms
• Travel and transportation for work
• Job expenses that aren’t reimbursed
• Costs paid to prepare a tax return, which can either be fees for tax preparation software or fees for e-filing 

Deductions Without Limits
There are some costs that don’t have to be more than two percent of your AGI in order to deduct.

• Losses from fraudulent investments such as a Ponzi-type scheme.
• Losses from gambling – only up to the amount you’ve won from gambling.
• Losses in theft or an assured casualty. Typically, this applies to stolen or damaged property you were holding for investment like stocks, bonds, or works of art.

And then there expenses that you simply can’t deduct like personal living or family costs. The miscellaneous deductions that you can claim are usually reported on your Schedule A, Itemized Deductions. For more information about tax deductions, be sure to check out the following blogs:

Maximizing Your Deductions

Personal Tax Tips: Job Hunt Expenses

Finding more deductions you qualify for only puts more money in your pocket from your tax return. So why not allow yourself more time to locate these deductions by e-filing a tax extension with ExpressExtension? We support Form 4868, personal tax extension, and offer the utmost level of quality service for the best value-based pricing within the industry. You won’t find amazing service coupled with quality support anywhere else.

Expert assistance is available at our Rock Hill, South Carolina office. Feel free to contact our live professionals at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also either e-mail us at [email protected] or chat with us at www.expressextensions.com for any further assistance e-filing your extension forms.