As tax season approaches, exploring all available avenues to reduce your tax burden is something you should consider. While most of us are aware of the more common tax deductions, such as work-related expenses and charitable donations, there are several lesser-known purchases that you can also claim as tax deductions. By taking advantage of these deductions, you can potentially reduce your taxable income and save money.
To help you make the most out of your hard-earned money, we’ve listed down ten purchases you may not have known were tax deductible.
- Sunscreen and Protective Clothing:
If you work outdoors or under direct sunlight, you can claim the cost of sunscreen and protective clothing, such as hats, sunglasses, and long-sleeved shirts, as tax deductions. These expenses are considered necessary for your occupation’s safety requirements. - Home Office Expenses:
With the rise of opportunities to work remotely, many of us now have a designated home office. You can claim a portion of your home office expenses, including utilities, internet bills, and depreciation of office equipment, as tax deductions. Remember to keep records and calculate what percentage of your home is used for your work. - Self-Education Expenses:
If your education is directly related to your current employment, you can claim certain self-education expenses as tax deductions. This includes course fees, textbooks, stationery, and even travel expenses if they are incurred while attending educational events or seminars. - Tools and Equipment:
If you are required to purchase tools or equipment for your job, you can claim a tax deduction for these expenses. This applies to both employees and self-employed individuals, as long as the tools are essential for your work and not reimbursed by your employer. - Work-related Phone and Internet Expenses:
If you use your personal phone or internet for work-related purposes, you can claim a portion of these expenses on your tax return. Keep records of your work-related usage, such as call logs or data usage, to substantiate your claim. - Protective Equipment and Uniforms:
If your job requires you to wear specific uniforms or safety gear, the cost of purchasing, cleaning, or repairing these items can be claimed as tax deductions. This includes items such as high-visibility clothing, steel-capped boots, or specialized gear for tradespeople. - Union and Professional Association Fees:
If you are a member of a union or professional association directly related to your occupation, the fees you pay can be claimed as tax deductions. However, keep in mind that you cannot claim any portion of these fees that relate to political lobbying or contributions. - Home Internet Expenses for Rental Properties:
If you own a rental property and provide an internet connection for your tenants, you can claim a deduction for the expenses associated with the internet service. This applies as long as the internet is provided as part of the rental agreement. - Income-related Expenses:
If you derive income from investments, you may be able to claim certain expenses related to generating that income. This can include financial advice fees, investment property management fees, and even interest expenses on loans used for investments.
Of course, it’s your responsibility to keep accurate records and ensure that your expenses meet the necessary criteria. Take advantage of these and many other tax-deductible purchases and maximize your tax savings. For personalized advice based on your specific situation, we highly recommend that you consult a tax professional. Happy tax-saving!