Paying more than you need to by overlooking common deductions makes it even more of a pain. / Tooga/Getty Images
Paying your taxes is no fun. But paying more than you need to by overlooking common deductions makes it even more of a pain.
Don’t ignore these tax-trimming deductions:
Your home office. Many taxpayers skip this on the advice that it’s an IRS “red flag.” Go against the crowd and use it.
Meals, entertainment. People who own a business often take fewer deductions for meals and entertainment than they could. “That’s especially true relating to meals with family members who are also business associates,” says CPA Tom Wheelwright of Tempe, Ariz.
Travel. “Many times people go on trips and spend more time on business than on pleasure and forget to deduct the costs of the trip,” Wheelwright says.
Automobile. Choosing to deduct the standard mileage allowance instead of your actual auto costs can sometimes result in much larger deductions.
Interest expense. Personal interest expense, such as the interest on credit cards, is generally non-deductible. “However, sometimes people will use their credit cards or home equity line of credit for business or investment purposes, which then could make the interest deductible,” Wheelwright says.