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It's Tax Season - Have You Considered These Deductions?
Posted on February 11th, 2016

After the glitz and the shine of the holidays, winter turns into a dreary time of year. The cold and the snow can seem never-ending. Many of us find we need to work off a few extra pounds. The nights are long and sunshine is in short supply.

And then there's tax season.

Before you head south for warmer weather, we've got something to lift your winter blues. Here are a few tax tips that can possibly help you save some money:

1. Deduct Your Home Office

This one can be tricky, but if you have a dedicated space at home that is used strictly for business purposes, you can deduct it as a tax expense.

2. Look to see if you’re eligible for the self-employed health insurance deduction. 

According to NAHB, this deduction allows the self-employed to reduce their adjusted gross income by the amount they pay in health insurance premiums during a given year. You can file for it if you were self-employed, paid health insurance premiums for yourself and your family, and showed a profit for the year. You can also deduct your health insurance premiums from your income for purposes of calculating self-employment tax.

If you are a small business owner who needs help figuring out the potential impact of the new health care law on your business, including premium costs and employee coverage requirements, the Internal Revenue Service provides some helpful tips.

3. You can deduct part or all of your cell phone expenses.

If you are self-employed and use your mobile device exclusively for business purposes, you can claim that usage as a tax deduction. For example, if you purchased a mobile device in 2015 for $200, and you only used the phone for business purposes, you can deduct the $200. Or if you used your personal cell phone 30% of the time for business purposes, you can deduct 30% of the cost of your bill.

4. Startup Costs

If you started a new business in 2015, you might be able to deduct up to $10,000 in startup costs, including training and education, advertising and marketing, and equipment such as furniture and computers.

5. You may qualify for the Energy Efficient Home Credit. 

Eligible contractors can claim a credit for each qualified energy-efficient home sold or leased to another person during the tax year for use as a residence. The amount of the credit ($2,000 or $1,000) is based on the extent to which each new energy-efficient home meets the energy saving requirements set by the IRS.

Bonus Tip!

This year, the deadline to file taxes is April 18, instead of the usual date of the 15th. This means you get three extra days to complete both your federal and Utah state tax returns. But our advice to you is to get it done as soon as you can. Then head for warmer weather! As always, please seek the advice of a professional tax expert - CPA - to make sure you are obeying the law and getting the most out of your tax deductions.

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