How Do I Know Which Expenses are Tax Deductible?

Many people know little about what type of expenses may be used as tax deductions. Even persons who choose to itemize deductions on the annual tax return may only be familiar with a small number of the many tax-deductible options that are allowed by the government revenue agencies. While this lack of knowledge may not have a great impact on households with one source of income and no real permanent assets to consider, persons who run a home business often suffer from a lack of understanding of how to itemize items for taxes. There is no doubt that people who make a living through freelance or contract work need to have a working knowledge of potential itemized deductions is very important to the financial well being of the business. Generally, a tax deductible expense normally meets three basic qualifications. First, the expense must be incurred in the process of conducting or securing business associated with a stated trade or profession. Second, the tax deductible expense will be ...  more

There are a few miscellaneous expenses that guarantee tax savings to itemizers because they are deductible without regard to the 2% threshold. ...  more