Are you paying more than you should on your taxes? If you are not maximizing your eligible deductions, then you are paying more than your rightful share. At Fricke & Associates, LLC, our team is passionate about helping our clients find the right deductions and save money. Although you are probably aware of deductions such as the child tax credit, health savings account contribution, or student loan interest deduction, there are some unusual deductions you may not yet be aware of.
· Anti-Smoking or Weight Loss—If you have invested in a cessation program or acupuncture to alleviate nicotine addiction, you may be able to take a deduction if you have a prescription or medical referral from your doctor. Patients suffering from diabetes or heart disease who receive a recommendation for a weight loss program can apply for a deduction. Having a proper paper trail is important for proving that your doctor recommended this program to combat your disease or medical condition. The IRS may want copies of your referral and receipts for the services.
· Unpaid Personal Loans from Friends—If you loaned money to a friend and they are unable to pay you back, you can write it off as “bad debt” on your taxes. You can only write off $3,000 on your taxes. If the loan exceeds that amount of money, you will have to write it off in future tax years until the amount has been fully deducted. The IRS may ask for documentation proving that you tried to collect the money from your friend, but they were not able to pay.
· Wedding Costs—The average wedding costs more than $20,000. Although you cannot take a deduction for anything you like, there are a couple ways you can claim deductions after you say, “I do.” First off, if your wedding was at a registered historical site, you can deduct the cost for your venue. The government views this as a charitable contribution to the upkeep of an important historical location. Another option to recoup some wedding costs would be to donate your decorations or dress to charity after the wedding. Get a receipt and take a deduction.
· Expenses from Charitable Work—Charitable deductions are well-known, but you may not be aware of how you can be reimbursed for your out-of-pocket expenses. For example, if you travel to help provide storm relief in a neighboring state, you can deduct the gas money spent along the way.
· Energy Efficiency Upgrades—If you have made energy-efficient improvements to your home, you may be eligible for a residential energy credit. Eligible energy-efficient upgrades could include your insulation, HVAC system, water heater, roof, windows and doors, solar water heater, biomass stove, etc. Going green and saving green at the same time is a win-win for you and the environment.
The tax code can be really confusing. If you are looking to maximize your deductions, schedule a consultation with Fricke & Associates, LLC. We can help you save money and hassle on your tax filing process.