Home office deduction
You can claim this itemized deduction if you work from home and have a designated office space. The office must be your primary location for your business and used primarily for your business.
Home improvement deduction
Owning a home comes with countless responsibilities. The bright side of this is that some kinds of home improvements are tax deductible, depending on the situation and the type of changes you need to make to your home.
Food, groceries and entertainment deductions
You can write off meals and beverages when eating out both locally or when traveling, as long as they are for business purposes. Unfortunately, as of 2018 entertainment expenses are no longer eligible for any federal tax deductions. That means activities like golf outings or sporting events with clients, for example, are no longer eligible to be deducted from your taxes. You can claim an itemized deduction for groceries
, however, if your work requires food for a work-related purpose, but can only write off 50% of the expense.
Sometimes, we need to travel outside of our home state or region where we pay taxes to meet clients or business associates, or to conduct business. If your trip meets the qualifications, you can write off certain expenses including, lodging, transportation, meals and even dry cleaning.
Charitable contributions deduction
Charitable donations can also be tax-deductible if they meet specific criteria. You can donate money or goods such as furniture, household items or a car to a non-profit organization, a church or foundation, for example. Then you can either deduct the contribution as an itemized deduction on Schedule A
, Form 1040, or take the standard deduction. For the 2021 tax year, you can now claim a standard deduction up to $300 for single filers, or $600 for married couples filing jointly.
Education tax deduction
If you’re working towards furthering your education, you may qualify for work-related education deductions including tuition, books, supplies and transportation.
Health insurance deduction
As a self-employed individual or freelancer, you’re allowed to deduct your healthcare premiums including dental insurance, medical insurance or long-term care (LTC) insurance regardless of whether you itemize your deductions or not.
Child tax credit
Having a kid is expensive. So if you have qualifying dependents, you may be eligible for the Child Tax Credit. In 2021, the federal government expanded the Child Tax Credit to offer greater support to Americans with children, but it reverted back to providing taxpayers with a credit amount of $2,000 for each dependent 17 years or younger from 2022.