Hiring an experienced and knowledgeable tax consultant to prepare your taxes, you can make sure you never pay a penny more than you owe. At James T. Borello & Co., our consultants have decades of experience with tax preparation, and we never miss an opportunity to reduce our clients’ tax liability.
There is no substitute for consulting an expert when preparing your taxes, as tax experts are intimately familiar with the ever-changing tax code and how individuals can strategize to save money. Here are just a couple strategies we recommend to help individuals reduce their taxable income through deductions:
- Deduct work-related travel and entertainment expenses—If you travel or entertain for work, some or all of your unreimbursed expenses may be deductible. The expenses must be an “ordinary and necessary” part of your job, however. Such expenses might include a plane ticket to a business conference or dinner with clients. Additionally, unless you are self-employed, you can only take these deductions on the amount that exceeds 2% of your adjusted gross income.
- Deduct medical expenses—If you have unreimbursed medical expenses that exceed 10.00% of your adjusted gross income (including co-pays, prescriptions, etc.), these may also be deductible.
Both of these types of deductions require you to itemize on your tax return. For work-related expenses, keeping accurate logs is recommended. Additionally, if you find documentation that entitles you to a greater refund on a previous year’s taxes, you may be able to file an amended tax return and recover the difference.