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A Few of the Most Often Overlooked Tax Deductions

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The end of the year is drawing to a close, and it’s time for many people to start thinking about their taxes. If you are in the habit of doing your taxes yourself (which is great if you have a simple tax return; if it’s more complex you would probably be better suited having an accountant in Billings, Montana look it over), then you need to know about all of the deductions that you may be eligible for. While it is easy to remember charitable giving and interest on your home mortgage, here are a few that you may overlook.

Gambling Losses – Nobody ever likes to lose money while gambling. But there is a silver lining. If you are out on the town and you stumble into a casino after a few too many beers, you can deduct the losses from your taxes (it goes both ways: if you win money you are supposed to claim it as income as well). Now there are a few provisions.

If you try to claim that you lost $10,000 gambling one night, but you have no way to prove that you lost $10,000 gambling one night, you might be in a bit of trouble. But if you bought $250 worth of scratch off lottery tickets, and you only won $50, you can deduct the $200 as a loss. As with everything tax related, keep your receipts so you can back up your claims in the event of an audit.

School Loan Interest – Not only can you get a tax credit for going back to school, you can also deduct the interest that you paid on those loans. Depending on how advanced your degree is, how expensive a school you went to, and how high your interest rate is, that interest could add up to a tidy sum.

This is one of the easiest deductions to get, since those handling your loans should be sending you a tax document in the mail every year. But if you are like most people who have recently graduated, you have probably moved around a bit. If you don’t remember getting your 1099-E then check with your loan manager to make sure they have your proper address.

Phone Bill – If you use your cell phone for business related purposes, you can probably write off a portion of the bill. If the phone is 100% used for business you can write off the entire thing, but if you use it to text friends and family, upload pictures of your totally sweet vacation to Facebook, or Snapchat with your best buds, then you should only take a partial deduction.

The same goes for internet and computers as well. If you have a work computer, then you can write off the purchase price. If you work from home, then your internet bill can be deducted (actually, if you have a home office, then you have a whole lot more deductions at your fingertips).

Getting the most out of your taxes is a bit tricky at times. It boils down to knowing the tax law, knowing which deductions are available to you, and being able to accurately claim them. If it all sounds like too much work, then you should probably hire an accountant in Billings, Montana to do that for you. Chances are, using the services of an accountant will actually get you a bigger refund (even after accountant expenses) than you realized you could get.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

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