A:

Whether you file your return yourself, or have it done by a tax professional, you want to make sure you include all your deductible expenses and income on your return. Failure to do so may result in you having to pay more taxes than you should, or file an amended tax return, which means additional associated time and monetary costs.

Make a list and check it twice. If you are not sure whether something should be included, check with a tax professional. Many individuals miss out on claiming eligible deductions because they are unaware that the expense was deductible. For instance, many individuals are unaware that the depreciation for their computers and cellular telephones may be deductible, if they are used for work because it is required by their employer. Depreciation of your computer is also deductible if you use it to produce income - for instance if you are a web designer, freelance writer or research consultant and you use your computer to perform your work. (To learn more about what may be considered a deduction, see The Mortgage Interest Tax Deduction, Tax Deductions For Rental Property Owners, Don't Overlook These Broker Deductions and Deducting Your Donations.)

Seasoned tax preparers are usually aware of what can be deducted, and whether you need additional information in order to maximize your deductions. If you need assistance, be sure to have one of these experts review your list of income and expenses.

For more articles on filing taxes, see Common Tax Questions Answered, Money Saving Year-End Tax Tips and Which is better for tax deductions, itemization or a standard deduction?

By Denise Appleby, CISP, CRC, CRPS, CRSP, APA

RELATED FAQS

  1. What is the difference between income tax and capital gains tax?

    Understand the difference between a person's income tax and his capital gains tax. Learn when a person needs to pay taxes ...
  2. What is the optimal level of withholding tax to enter on my W-4?

    Learn about the federal governments payroll tax withholding scheme and how it affects your paycheck, including how to determine ...
  3. How can I calculate my withholding tax rate?

    Find out how to use the IRS website to estimate your proper withholding tax rate, and what you need to do if your information ...
  4. What's the difference between short-term investments and marketable securities?

    Read about withholding taxes, how they work, and why there are both federal and state withholding lines on the typical American's ...
RELATED TERMS
  1. Tax Deductible Interest

    A borrowing expense that a taxpayer can claim on a federal or ...
  2. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  3. Quid Pro Quo Contribution

    A charitable donation for which the donor receives something ...
  4. Readvanceable Mortgage

    A mortgage feature that allows the borrower to re-borrow the ...
  5. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
  6. Benefits Received Rule

    1. A theory of income tax fairness that says people should pay ...

You May Also Like

Related Articles
  1. Investing

    Why did Larry Page pay himself a salary ...

  2. Professionals

    Vanguard Readies Muni Bond ETF

  3. Stock Analysis

    What Makes LinnCo Different From MLPs?

  4. Stock Analysis

    Why Should Investors Read The Annual ...

  5. Professionals

    'Tis The Season For Tax-Loss Harvesting

Trading Center