Insights from a CPA: Top Tax Deductions You Might Be Missing

As a certified public accountant in Houston, TX, we have seen many individuals and businesses overlook valuable tax deductions that could save them a significant amount of money. In this article, JC CPAs and Advisors will be sharing some insights on the top tax deductions you might be missing and how you can maximize them to reduce your tax liability. Contact us today to speak with a certified public accountant and ensure you're not missing out on valuable tax deductions!

Benefits for Individuals and Businesses

By maximizing your tax deductions, you not only reduce your tax liability but also increase your take-home pay and improve your cash flow. For businesses, maximizing deductions can help free up cash flow and increase profits, which can be reinvested to grow the business. For individuals, it means more money in your pocket to save or spend on things that matter to you. So, whether you're an individual or a business owner, it's essential to identify all the tax deductions you're eligible for and take full advantage of them.

Don't Overlook Charitable Donations

Charitable donations are one of the most commonly overlooked tax deductions. It’s important to keep track of all your donations made throughout the year and have the proper documentation to support them. This can include receipts, canceled checks, and acknowledgment letters from the charity. You can deduct up to 60% of your adjusted gross income in charitable donations. It’s definitely worth keeping track of, especially when working with a certified public accountant.

Tax Deductions for Home-Based Businesses 

If you work from home, you may be eligible for a home office deduction. This deduction allows you to write off a portion of your home expenses, such as rent or mortgage interest, property taxes, utilities, and maintenance costs, that are directly related to your home office. To qualify, your home office must be used exclusively for work purposes.

Often Missed Medical Expense Deductions

Medical expenses can add up quickly, but they can also provide valuable tax deductions. You can deduct medical expenses that exceed 7.5% of your adjusted gross income. This can include expenses such as doctor’s visits, prescription medications, and medical equipment. When using a certified public accountant, keep track of all your medical expenses throughout the year. Also make sure to have the proper documentation to support them.

Deductions With Retirement Contributions

Contributing to a retirement account, such as a 401(k) or IRA, not only helps you save for the future but can also provide valuable tax deductions. The amount you can deduct depends on the type of account and your income level. It’s important to consult with a CPA to determine the best retirement account for your financial situation.

Tax Deductions for Business Owners

If you own a business, there are many tax deductions you may be missing out on. This can include expenses such as office rent, supplies, travel expenses, and advertising costs. Along with your certified public accountant, keep track of all your business expenses throughout the year. Remember to have the proper documentation to support them.

Maximize Tax Deductions With a Certified Public Accountant

Maximizing your tax deductions can help reduce your tax liability and save you a significant amount of money. As a certified public accountant in Houston, TX, JC CPAs and Advisors can help you identify all the tax deductions you may be eligible for and ensure that you’re taking full advantage of them. Don’t miss out on valuable tax deductions! Book an appointment with us today on our home page and ensure you’re maximizing your deductions and reducing your tax liability