You cannot claim the cost of normal trips between home and work because that travel is private even if:. Do you need to wear a suit to work? Or perhaps you need to wear a uniform emblazoned with your company's logo? Perhaps you work in a clothes shop and have to come to work wearing clothes bought in that store?
Whatever the case, you have to conform to your employers dress policy so there might be an expectation that you'll be treated the same way by the taxman when it comes to claiming tax deductions for your work clothing. Clothing can only be claimed if it is specific to your occupation. For example, chef's pants. You cannot claim the cost of purchasing or laundry for clothes that are not specific to your occupation. These include black pants and white collar shirts. You can however, claim clothing and footwear you wear to protect yourself from injury or illness.
For example sun protection can be claimed if you work outdoors. Uniform specific clothing can be claimed if it has your company's logo attached or if it sits inside your employer's uniform policy. For a list of clothing you can and can't claim, read our Work related expenses - tax deductions for work clothing.
If you carry out all or part of your employment activities from home, then some portion of the home office expenses can be claimed as a tax deduction. Ideally, you should have a room set aside as a home office. Whilst you do not need to have a room set aside for your home office claim, if you are using a room with a dual purpose e. As with anything tax related keeping records for your home office is critical. If you work from home you may be entitled to expenses such as computers, phone or any other electronic devices you need for work.
You can also deduct running costs for any electricals. You can also claim your phone bill if it is used in part for work related expenses. If you use your own phone for work purposes, you can claim a deduction if you paid for these costs and have records to support your claims. If you use your phone for both work and private use, you will need to work out the percentage that reasonably relates to your work use. You can't double-dip and claim for phone expenses that have been reimbursed by your employer.
To work out your deduction, you need to choose a typical four-week period from some point in the tax year. If you have a phone plan where you receive an itemised bill, you need to determine your percentage of work use over that 4-week period.
You can then apply that to the full year. You need to calculate the percentage using a reasonable basis. For more information, read our mobile phone deduction tax tips. As a part of your profession, you may be a member of an association — the good news is, you can claim your subscriptions. If you're part of a trade union, your fees are also deductible.
Magazines can make a dent in your return, as can subscriptions to mags associated with your line of work. If you're an investor, financial publications and research services are claimable. Think ahead and prepay next year's fees before June 30 and claim your deduction now. Gifts or donations can only be claimed if the organisation you donated to has the status of deductible gift recipients DGRs. There are four key criteria to claim a tax deduction for a gift:. The amount that can be claimed depends on the type of gift.
For property the rules vary depending on the type and value. For gifts of property, there are different rules, depending on the type of property and its value.
Find credits and deductions for businesses. You can claim credits and deductions when you file your tax return. How Credits and Deductions Work When you claim federal tax credits and deductions on your tax return, you can change the amount of tax you owe. Deductions can reduce the amount of your income before you calculate the tax you owe. Credits can reduce the amount of tax you owe or increase your tax refund, and some credits may give you a refund even if you don't owe any tax.
Business Credits and Deductions Find credits and deductions for businesses. Credits for Individuals Family and Dependent Credits. That lowers the amount of taxes you have to pay. No need to dig through receipts or bank statements to find your deductions. How do you know which option is best for you? There are a few things you need to know before you make your decision this year.
Thanks to the tax reform bill , the standard deduction almost doubled from what it used to be. For the tax year, the standard deduction has been adjusted slightly for inflation. Married and filing together? Those numbers continue to climb in Important to note: If you or your spouse are over 65 or legally blind, you might be able to get a larger standard deduction.
Be sure and check with a tax pro if you have any questions. Here are some of the most common deductions that many taxpayers can take advantage of:.
The more you give, the more you can deduct from your taxes! If you itemize your deductions, any money you gave to your church, your alma mater, or your favorite charities can all be written off your taxes.
Do you have health insurance but still find yourself paying out of pocket for medical or dental expenses? The IRS lets you deduct medical expenses that are more than 7.
A lot of folks forget this one! The IRS lets you choose to deduct either your state and local sales tax or income tax, along with some foreign taxes. If you live in a state with no income tax or you made some big purchases like a new car or a furniture set for the living room, the sales tax deduction is the way to go.
To calculate your deduction, check out the IRS sales tax deduction calculator. It also gradually phases out as your income increases. Ah, the joys of homeownership! If you happen to have a traditional IRA, those contributions are most likely tax-deductible.
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