Tax Tips You Need To Know Before Filing

Check out these 12 tax tips you need to know before filing this year.

What To Do - People will tell you lots of things are tax deductible, and it is always tempting to just write off some expenses. But be careful; doing so could land you in big trouble with the IRS, if you don't follow this advice.

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What To Do - People will tell you lots of things are tax deductible, and it is always tempting to just write off some expenses. But be careful; doing so could land you in big trouble with the IRS, if you don't follow this advice.

Credit Card Interest - Credit card interest, is not deductible. However, there is an exception if you use your credit card for business, pay interest on business purchases and can document what those purchases are, then that interest is allowable.

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Credit Card Interest - Credit card interest, is not deductible. However, there is an exception if you use your credit card for business, pay interest on business purchases and can document what those purchases are, then that interest is allowable.

Entertainment and Meals - As long as your entertainment expenses are directly related to your business and you're discussing your business over meals, it's cool. If you're hosting an event to promote your company, or even if you and your business partner go out to eat to discuss the business, it's acceptable. However, don't get carried away. The expense can't be extravagant.

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Entertainment and Meals - As long as your entertainment expenses are directly related to your business and you're discussing your business over meals, it's cool. If you're hosting an event to promote your company, or even if you and your business partner go out to eat to discuss the business, it's acceptable. However, don't get carried away. The expense can't be extravagant.

Equipment and Supplies - This applies to any computer equipment that you might use, including furniture, electronics or anything else that is used in your home office. You should make sure that you are using this computer more for business more than pleasure and be able to demonstrate this if you ever get audited. For the most part, as long as you don't abuse this rule, you should be fine.

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Equipment and Supplies - This applies to any computer equipment that you might use, including furniture, electronics or anything else that is used in your home office. You should make sure that you are using this computer more for business more than pleasure and be able to demonstrate this if you ever get audited. For the most part, as long as you don't abuse this rule, you should be fine.

Homeowners Insurance - This is not deductible unless the property is used for business or is a rental.

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Homeowners Insurance - This is not deductible unless the property is used for business or is a rental.

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Home Office - In order to deduct your home office, the IRS says that you must have a special area sectioned off for your business where you conduct all of your business-related activities. This room could be a garage or separate room where you store inventory or products. A bed or dresser should not exist in the room.

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Home Office - In order to deduct your home office, the IRS says that you must have a special area sectioned off for your business where you conduct all of your business-related activities. This room could be a garage or separate room where you store inventory or products. A bed or dresser should not exist in the room.

IRA Losses - Because you deferred the tax on these dollars, losses inside a 401(k), individual retirement account or qualified pension are never deductible. You just have less income to report because fewer dollars come out of the account upon distribution.

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IRA Losses - Because you deferred the tax on these dollars, losses inside a 401(k), individual retirement account or qualified pension are never deductible. You just have less income to report because fewer dollars come out of the account upon distribution.

Life Insurance Premiums - Life insurance premiums are not deductible as medical or investment expenses. Because the proceeds of a policy come to the beneficiary tax-free, there's no deduction for any premiums paid.

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Life Insurance Premiums - Life insurance premiums are not deductible as medical or investment expenses. Because the proceeds of a policy come to the beneficiary tax-free, there's no deduction for any premiums paid.

Moving Expenses - Expenses for house hunting and temporary living expenses used to be allowed. This changed in 1993, however. Now you can deduct only the cost of moving your goods and personal effects; and the cost of your travel to the new home, including lodging. But you can't deduct the cost of the meals in traveling. And if your employer puts you up in temporary housing before you move into your home, that's considered income to you.

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Moving Expenses - Expenses for house hunting and temporary living expenses used to be allowed. This changed in 1993, however. Now you can deduct only the cost of moving your goods and personal effects; and the cost of your travel to the new home, including lodging. But you can't deduct the cost of the meals in traveling. And if your employer puts you up in temporary housing before you move into your home, that's considered income to you.

Travel Expenses - Using your business as a tax shelter is a great way to fund your next vacation. With proper planning, you can get your business to pay for and write off most of your trip! But keep in mind, the primary purpose of the trip must be for business. Lodging can be deducted in its entirety. Food can be deducted by 50 percent. Transportation can be deducted 100 percent. Laundry and mobile office related fees can be deducted 100 percent.

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Travel Expenses - Using your business as a tax shelter is a great way to fund your next vacation. With proper planning, you can get your business to pay for and write off most of your trip! But keep in mind, the primary purpose of the trip must be for business. Lodging can be deducted in its entirety. Food can be deducted by 50 percent. Transportation can be deducted 100 percent. Laundry and mobile office related fees can be deducted 100 percent.

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Your Vehicle - While it is possible to deduct your vehicle, you have to be careful. The IRS has a list of rules in place that you must follow when expensing your vehicle. For instance, you need to write down every mile that you are using the car for business. Whenever you drive somewhere, just write down your starting and ending odometer miles for all business-related travel. Before deducting any portion of your vehicle, make sure you check the IRS for the latest rules.

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Your Vehicle - While it is possible to deduct your vehicle, you have to be careful. The IRS has a list of rules in place that you must follow when expensing your vehicle. For instance, you need to write down every mile that you are using the car for business. Whenever you drive somewhere, just write down your starting and ending odometer miles for all business-related travel. Before deducting any portion of your vehicle, make sure you check the IRS for the latest rules.

Keep It Honest - Bottom line, keep it honest and nothing can go wrong. And if you have any questions, contact the IRS or seek help from a legitimate tax preparer.

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Keep It Honest - Bottom line, keep it honest and nothing can go wrong. And if you have any questions, contact the IRS or seek help from a legitimate tax preparer.