Tax Tools and Tips

Professional Financial Services

Individual Shared Responsibility Provision – Minimum Essential Coverage

  1. What is the individual shared responsibility provision?

Under the Affordable Care Act, the federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States. Starting in 2014, the individual shared responsibility provision calls for each individual to have qualifying health care coverage (known as minimum essential coverage) for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. The forms for reporting coverage, exemptions or making a payment with the federal income tax return can all be prepared and filed electronically.

  1. Who is subject to the individual shared responsibility provision?

The provision applies to individuals of all ages, including children. The adult or married couple who can claim a child or another individual as a dependent for federal income tax purposes is responsible for making the payment if the dependent does not have coverage or an exemption.

PATH Act Tax Related Provisions
The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), was enacted on December 18, 2015. The PATH Act contains several changes to the tax law that affect individuals, families, businesses and help safeguard against tax fraud.

Possible Refund Delay for Some Early Filers:
The PATH Act mandates that the IRS not issue a refund on tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit until Feb. 15. The additional time helps the IRS stop fraudulent refunds from being issued to identity thieves and fraudulent claims with fabricated wages and withholdings.

Most Overlooked Deductions

38 Overlooked Business Deductions

  1. Accounting
  2. Advertising
  3. Automobile and truck expense (if not taking mileage expense)
  4. Bank charges
  5. Business interest
  6. Cell phone
  7. Commissions
  8. Delivery and freight
  9. Dues and subscriptions (business related)
  10. Equipment rent
  11. Gifts to clients (up to $25 per client)
  12. Incorporation Fees
  13. Insurance
  14. Janitorial
  15. Laundry and cleaning
  16. Legal and professional
  17. Licenses
  18. Meal and entertainment
  19. Mileage (48.5 cents a mile for tax year 2007)
  20. Miscellaneous
  21. Office expense
  22. Outside services (lawn care, car washes, etc.)
  23. Pager
  24. Parking fees and tolls
  25. Permits and fees
  26. Postage
  27. Printing
  28. Rent
  29. Rental cars
  30. Repairs and maintenance
  31. Security
  32. Supplies
  33. Telephone
  34. Tools
  35. Travel
  36. Uniforms
  37. Utilities
  38. Wardrobe expenses

19 Overlooked Casualty & Theft Loss Deductions

  1. *Insurance and Reimbursements
  2. Bathrooms
  3. Bedrooms
  4. Children’s clothing
  5. Den
  6. Dining Room
  7. Electrical Appliances
  8. Entrance Hall
  9. Garage
  10. Jewelry
  11. Kitchen
  12. Laundry & Basement
  13. Linens
  14. Living Room
  15. Men’s Clothing
  16. Miscellaneous
  17. Recreation Rooms
  18. Sporting Equipment
  19. Women’s Clothing

12 Overlooked Contractors (Home Improvement, Builders, Painters) Deductions

  1. Advertising
  2. Cell Phone
  3. Gas
  4. Lease Equipment
  5. Lease Payment
  6. Mileage
  7. Permits
  8. Protective Gear (Boots, Gloves, Clothes)
  9. Rental Equipment
  10. Supplies/Materials
  11. Tools
  12. Uniforms

16 Overlooked Daycare Services Deductions

  1. Accounting
  2. Advertising
  3. Cell Phones
  4. Equipment
  5. Food
  6. Insurance
  7. Laundry
  8. Mileage/Gas
  9. Office Expense
  10. Office Phone
  11. Rent/Lease
  12. Repairs/Maintenance
  13. Supplies
  14. Tools
  15. Utilities
  16. Wages/Salaries

13 Overlooked Entertainers (Musicians, Comedians, Dancers) Deductions

  1. Accounting
  2. Advertising (flyers, business cards)
  3. Cell Phone
  4. Equipment used to perform services
  5. Laundry/Dry Cleaning
  6. Meals & Entertainment
  7. Mileage/Gas (whichever is greater)
  8. Payouts to individuals who assist or manage
  9. Rental Cars
  10. Rental Equipment/Supplies
  11. Supplies
  12. Travel Expenses (hotel, airfare, etc.)
  13. Wardrobe/Costumes

11 Overlooked Fire Fighters Deductions

  1. Cell Phone
  2. Certifications (classes)
  3. Dry cleaning
  4. Internet
  5. Meals
  6. Mileage
  7. Office Expenses
  8. Parking
  9. Protective Gear
  10. Supplies
  11. Tools

11 Overlooked Flight Attendants Deductions

  1. Cell Phone
  2. Certifications (Classes)
  3. Dry Cleaning
  4. Internet
  5. Meals
  6. Mileage
  7. Parking
  8. Professional upkeep
  9. Supplies (panty hose, uniform accessories, shoes, unreimbursed clothing)
  10. Taxi Fees
  11. Wardrobe Expenses

10 Overlooked Food Servers & Bartenders Deductions

  1. Cable (if required by employer)
  2. Cell Phone
  3. Classes ( wine tasting, etc.)
  4. Continuing education related to your profession
  5. Mileage/Gas
  6. Professional Upkeep
  7. Special Shoes or Boots
  8. Supplies (table brush, bottle opener, cork screw)
  9. Tip Out
  10. Uniforms

15 Overlooked Hair Stylist/Barbers (Salon Owners) Deductions

  1. Advertising
  2. Booth rent
  3. Business Phones
  4. Cell Phones
  5. Drycleaning/Laundry
  6. Equipment
  7. Gifts to clients (up to $25.00)
  8. Hair shows, seminars, conference fees, accounting, payroll, tax prep
  9. Insurance
  10. Meals & Entertainment
  11. Mileage/Gas
  12. Pay to staff, contractors or support
  13. Supplies
  14. Travel
  15. Uniforms

17 Overlooked IT/Computer Services Deductions

  1. Accounting
  2. Advertising
  3. Cell Phones
  4. Certifications
  5. Continuing Education
  6. Gifts to Clients (up to $25.00)
  7. Hardware/Software
  8. Insurance
  9. Internet
  10. Meals & Entertainment
  11. Mileage/Gas
  12. Office Expenses
  13. Office Phone
  14. Pay to contractors
  15. Supplies
  16. Tools
  17. Travel Expense

13 Overlooked Lawn Service Deductions

  1. Accounting
  2. Advertising
  3. Business License
  4. Equipment
  5. Insurance
  6. Laundry
  7. Meals & Entertainment
  8. Mileage/Gas (whichever one is greater)
  9. Pay to Contractors
  10. Protective Gear (special boot, jackets & coat, eyewear)
  11. Supplies
  12. Tools
  13. Uniforms

17 Overlooked Medical Doctor Deductions

  1. Cell Phone
  2. Certain Internet Costs
  3. Certifications
  4. Continuing Education
  5. Dues for Professional Organizations
  6. Equipment (Stethoscopes, etc.)
  7. Insurance
  8. Licenses
  9. Medical Supplies
  10. Mileage
  11. Newsletters & Subscriptions
  12. Office Lease, Rent
  13. Pager (work)
  14. Seminars & Conferences
  15. Some Parking
  16. Travel Expenses
  17. Uniforms

9 Overlooked Medical Doctors Deductions

  1. Certain Internet Costs
  2. Certifications
  3. Continuing Education
  4. Dues for Professional Organizations
  5. Equipment (Stethoscopes, etc.)
  6. Licenses
  7. Newsletters & Subscriptions
  8. Pager (work)
  9. Seminars & Conferences

7 Overlooked Military Personnel Deductions

  1. Additional Ammo
  2. Cell Phone
  3. Certain Internet Costs
  4. Dry cleaning
  5. Parking
  6. Supplies
  7. Travel

17 Overlooked Network Marketing Deductions

  1. Accounting
  2. Advertising
  3. Cell Phones
  4. Gifts to clients (up to $25.00)
  5. Insurance
  6. Mileage/Gas (whichever one is greater)
  7. Networking Parties
  8. Office lease, rent
  9. Office Phones
  10. Paid lunch, breakfast, dinner for potential clients
  11. Rental Cars
  12. Required Business Attire
  13. Seminar/Coference Fees
  14. Start up packages
  15. Supplies
  16. Travel Expenses
  17. Utilize emails to clients

19 Overlooked Casualty & Theft Loss Deductions

12 Overlooked Nurses/Traveling Nurse Deductions

  1. Cell Phones
  2. Certifications
  3. Continuing education or classes
  4. Dues for Professional Organizations
  5. Equipment(statoscopes, etc.)
  6. Gowns
  7. Licenses
  8. Newsletters & Subscriptions
  9. Pagers
  10. Seminars and Conferences
  11. Shoes
  12. Travel to multiple locations (clinics, hospitals)

10 Overlooked Office (Home) Deductions

  1. Home Office deductions only apply to business profits that are positive and unreimbursed employee expenses.
  2. Home Repairs/Maintenance (office related)
  3. Home/Renters Insurance
  4. Office Repairs/Maintenance (paint, carpet, etc.)
  5. Other Expenses (water, sewer, garbage, snow removal, lawn care, other)
  6. Rent/Mortgage
  7. Security System
  8. Square Feet of Office
  9. Total Sq Feet of Home
  10. Utilities

49 Overlooked Personal Deductions

  1. Alcohol and drug abuse treatment cost
  2. Alimony paid
  3. Business expenses including travel, meals, lodging and entertainment not reimbursed by employer (Business Deductions)
  4. Business gifts up to $25 per customer or client
  5. Casualty and theft losses in excess of $100 and totaling more than 10% of adjusted gross income
  6. Cellular phones required for business
  7. Cleaning and laundering services while traveling
  8. Commission to brokers or agents for sale of property or property management
  9. Cost of safe deposit box used for investments or business
  10. Disabled individual’s work-related expenses
  11. Dues to professional organizations
  12. Education expenses paid to maintain or improve job skills
  13. Employee’s moving expenses
  14. Equipment for disabled or handicapped individuals
  15. Fees for tax preparation or advice
  16. Fees or commissions paid to employment agencies
  17. Gambling losses to the extent of winning
  18. Hearing aids, eyeglasses and contact lenses
  19. Home office expenses, if primary place of business
  20. Hospital fees for services such as nursing, physical therapy, lab tests and x-rays
  21. Interest on student loans
  22. Job-seeking expenses within present field of employment
  23. Legal fees to collect taxable alimony
  24. Mandatory contributions to state disability funds
  25. Medical aids such as crutches, canes and orthopedic shoes
  26. Medical transportation including tolls, parking, and standard mileage deductions for visiting doctors, dentists and picking up medicine
  27. Mileage incurred in relation to charitable activities
  28. New business start-up costs
  29. Nursing home expenses
  30. One-half of the self-employment tax paid
  31. Out-of-pocket funds paid for school
  32. Payment by December 31st of last quarter of estimated state taxes
  33. Penalty on early withdrawal of savings
  34. Personal property taxes on cars, boats, etc.
  35. Points paid on mortgage or mortgage refinancing
  36. Portion of life-care fees paid to retirement homes designated for medical care
  37. Professional journals, magazines and newspapers that are job related
  38. Property and Cash contributions to a recognized charity
  39. Required uniforms and work clothes not suitable for street wear
  40. Seeing-eye dog or guard dog for business
  41. Services of a housekeeper, maid or cook needed to run your home while you work and for the benefit of a qualifying dependent
  42. Special school costs for mentally, or physically disabled individuals
  43. State income taxes owed from a prior year and paid in the tax year
  44. Support of a non-dependent student living with you
  45. Taxes to a foreign government
  46. Tools bought for use at your job
  47. Union dues
  48. Wages for nursing services
  49. Worthless stock or securities

12 Overlooked Police Officers Deductions

  1. Cell Phone
  2. Certifications
  3. Continuing Education
  4. Dry Cleaning
  5. Equipment (additional firearms, boots, vest)
  6. If you have done some independent or private details, please go to our tax tips page and look under top business deductions
  7. Internet
  8. Licenses
  9. Meals
  10. Mileage
  11. Seminar/Conferences
  12. Supplies (aminuition, protect vest, cuffs)

19 Overlooked Real Estate Agent/Loan Officer Deductions

  1. Advertising
  2. Answering service
  3. Business Travel
  4. Cell Phone
  5. Client’s lunch/dinner
  6. Commissions/Fees paid to brokers
  7. Conference/Seminar Fees
  8. Continuing education classes
  9. Depreciation of vehicle
  10. Dry Cleaning
  11. Estimated Taxes
  12. Gifts to clients (up to $25.00)
  13. Lease payments (% of auto usage)
  14. Mileage/Gas
  15. Office space/rent/lease
  16. Postage
  17. Rental Car
  18. Required business attire
  19. Supplies: Lock Box, Signs, etc.

5 Overlooked Rental Prop/Invest (Deductible Repairs) Deductions

  1. Fixing broken windows & doors
  2. Fixing Gutters & Downspouts
  3. Repainting inside or out
  4. Repairing leaky plumbing & replacing fixtures
  5. Replastering Holes

16 Overlooked Rental Property/Investment Deductions

  1. *(Deductible Expenses)
  2. *A Security deposit is not income if you are planning on returning it at the end of the lease. If you apply the deposit to the last month’s rent, it is considered income.
  3. Advertising
  4. Cleaning & Maintenance Fee
  5. Credit Checks for tenants
  6. Depreciation
  7. Insurance
  8. Legal or Professional
  9. Management Fees
  10. Mortgage Interest
  11. Pest Control, lawncare & trash disposal
  12. Property Taxes
  13. Repairs, including labor cost
  14. Supplies
  15. Travel Expenses
  16. Utilities

10 Overlooked Teacher Deductions

  1. Cable (if required by employer)
  2. Cell Phone
  3. Certifications
  4. Classroom supplies
  5. Continuing Education
  6. Hardware/Software purchased for classroom or work reasons (computer, laptop, disks, copier, scanner)
  7. Internet
  8. Mileage/Gas related to work training
  9. Newsletters & Subscriptions (profession related)
  10. Seminar/Conferences

8 Overlooked Truck Driver (Contractor) Deductions

  1. Cell Phone
  2. Communication Equipment
  3. Fees paid to others
  4. Fuel
  5. Insurance
  6. Repairs/Maintenance
  7. Tools
  8. Uniforms

10 Overlooked Truck Driver (Owner Operator) Deductions

  1. Advertising
  2. Cell Phone
  3. Depreciation
  4. Fees paid to others
  5. Fuel
  6. Insurance
  7. Lease Payments
  8. Repair/Maintenance
  9. Tools
  10. Uniforms

Useful Links

Documents needed to Claim Earned Income Credit

document

990 checklist

document

1040 checklist

document

1041 checklist

document

1065 checklist

document

1120 checklist

document

1120s checklist

document

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