It’s time for that dreaded annual date with Uncle Sam.
You worry about how much it’s going to cost you. He’s usually not one to settle for a movie and McDonald’s. Relax, maybe there might be tax breaks you’ve overlooked.
- Deduct advice
The IRS will let you deduct certain expenses incurred on your taxable investments over and above 2% of your adjusted gross income (AGI). This could be investment counsel and advice, including subscriptions to financial publications, software or online services used to manage your investments, says Kyle Ryan, executive vice president of Personal Capital Advisors in Redwood City, California.
- Cash in on the dentist
Many people overlook medical expenses because you can only deduct the amount that exceeds 10% (7.5% if you’re over 65) of AGI, but dental work, which, even if you have insurance, can have high out-of-pocket costs, may qualify for a medical deduction, says David Isaacs, a CPA with UHY Advisors in Manhattan.
- Home sweet home
Maybe you jumped on the Airbnb bandwagon and rented out your home. If you did for up to two weeks, David Reiss, a Brooklyn Law School professor, specializing in real estate has good news, “that income is tax free.”