Discover the Top Five Missed Deductions When Filing Your Taxes: Maximize Your Savings Today!

Author: Number Crunchers® | | Categories: Accounting Services , Bookkeeping Services , Tax Preparation

Blog By Number Crunchers®

When it comes to tax season, many business owners and individuals are focused on ensuring their taxes are filed accurately and on time. However, what often gets overlooked are the numerous deductions that could significantly reduce their tax liability. At Number Crunchers®️, we understand the complexities of accounting and bookkeeping, and we are here to help you uncover the hidden deductions you may have missed. In this blog post, we will highlight the top five missed deductions when filing your taxes, providing you with valuable insights to maximize your savings. Don’t miss out on potential savings - let’s dive right in!

Tip #1 - ChildCare: Uncover Potential Savings for Your Little Ones

One deduction that often goes unnoticed is the childcare expense deduction. Did you know that you can claim up to $8,000 per child to cover the costs of daycare or other childcare expenses for children under sixteen years of age? If your child is mentally or physically infirm, the age limit doesn’t apply, and the deduction amount increases to $16,000. By taking advantage of this deduction, you can significantly reduce your tax burden while ensuring your child receives quality care.

Tip #2 - Tuition and Education: A Transfer of Savings

If you or your spouse have incurred tuition and education expenses but have an income that is too low to claim the credits themselves, there’s good news! You can transfer these credits to a spouse or parent who can claim them. With a few simple forms to sign and some restrictions to consider, transferring the credits is an easy way to maximize your savings. Don’t let your hard-earned education expenses go unnoticed – make sure to explore this deduction opportunity.

Tip #3 - Employment Expenses: Deducting the Cost of Work

If you use your personal vehicle for work purposes (excluding commuting to and from your workplace) without reimbursement from your employer, you may be eligible to deduct the business portion of your automobile expenses. Even if you are reimbursed for some expenses, you can still claim a deduction for the non-reimbursed portion if the reimbursement amount is deemed “unreasonable.” To benefit from this deduction, your employer needs to complete form T2200 for you. Let Number Crunchers®️ guide you through the process and ensure you don’t miss out on potential deductions.

Tip #4 - Carrying Charges and Deductible Interest: Optimizing Your Investments

Proper planning can help you ensure that interest payments are deductible. By incurring loans to purchase investments with the intent of earning income, you can make the interest paid on those loans eligible for deduction. However, it’s crucial to have the proper documentation to support these deductions. Additionally, carrying charges, such as investment counsel fees, accounting fees, and safety deposit box charges, can also be claimed. Our team at Number Crunchers®️ can help you navigate the complexities of carrying charges and deductible interest to maximize your tax savings.

Tip #5 - Moving Expenses: Turn the Cost of Moving into Tax Savings

If you’ve recently moved for a job or to start a business, don’t forget to explore the potential deductions related to your moving expenses. Deductible moving expenses include costs such as moving services, real estate commissions on the sale of your former home, property purchase tax on your new home, and legal fees. Students can also benefit from this deduction when they move to start a job or a summer job. Ensure you meet the criteria, such as earning income from the new job or business at the new location or moving to be at least forty kilometers closer to your present job. Let us at Number Crunchers®️ guide you through the intricacies of deducting your moving expenses.

At Number Crunchers®️, we understand that accounting and bookkeeping can be overwhelming, especially when it comes to maximizing your tax savings. By focusing on the top five missed deductions when filing your taxes, we aim to bring attention to the opportunities that may have gone unnoticed. Don’t let these deductions slip through the cracks – let our experienced team assist you in navigating the complexities of accounting and bookkeeping while optimizing your tax savings.

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