Whether you’re self-employed, a freelancer, a small business owner, or even a full-time employee with side income, understanding the deductions available to you can result in meaningful savings. Partnering with professionals who offer tax preparation Cary NC is one of the smartest ways to ensure you're not missing out.
Here’s a closer look at commonly overlooked deductions—and how to claim them correctly.
1. Home Office Deduction
With the rise of remote work, more taxpayers in Cary are eligible for the home office deduction. If you use part of your home exclusively and regularly for business, you may be able to deduct a portion of your rent or mortgage, utilities, insurance, and repairs.
Many people avoid claiming this deduction for fear it will trigger an audit, but with accurate record-keeping and proper documentation, it’s perfectly legitimate. A tax professional can help you determine if your space qualifies and calculate the allowable amount based on square footage or the simplified method.
2. Self-Employment Expenses
If you’re self-employed or operate a side gig, you likely qualify for several deductions that reduce your taxable income. These may include:
- Internet and phone bills (portion used for business)
- Advertising and website costs
- Office supplies
- Business-related travel and meals
- Professional development or certifications
The key is proper classification and documentation. Mixing personal and business expenses can lead to red flags with the IRS, so having expert guidance is crucial.
3. Mileage and Vehicle Expenses
If you use your car for business purposes—such as driving to client meetings or delivering products—you can deduct those miles. The IRS offers a standard mileage rate (updated yearly), or you can deduct actual expenses like gas, maintenance, and depreciation.
To claim this deduction properly, you must maintain a detailed mileage log and distinguish between personal and business use. Many taxpayers miss this opportunity simply because they don’t track their trips.
4. Health Insurance Premiums
Self-employed individuals in Cary who pay for their own health insurance may be eligible to deduct those premiums from their taxable income. This includes premiums for medical, dental, and qualified long-term care insurance for themselves, their spouse, and dependents.
However, there are specific rules regarding eligibility. You can’t deduct premiums if you were eligible for coverage through a spouse’s employer. A tax advisor can help you navigate the fine print.
5. Education and Professional Development
Expenses related to improving your skills or maintaining your professional status can be deductible if they’re relevant to your current occupation. This includes:
- Courses, seminars, or certifications
- Educational materials and subscriptions
- Workshops or conferences
This deduction is often missed because people assume it only applies to traditional students. In reality, many working professionals in Cary qualify.
6. Startup Costs
If you recently launched a business in Cary, you may be able to deduct up to $5,000 in startup expenses in your first year. These might include legal fees, marketing costs, research, and any consulting fees related to getting your business off the ground.
Beyond the first year, ongoing business expenses are also deductible, provided they’re ordinary and necessary for your operations.
7. Charitable Contributions
Donations to qualified charitable organizations—whether in cash or goods—can reduce your taxable income. If you’ve donated items like clothing, furniture, or electronics, be sure to keep receipts or appraisals. Volunteering your time doesn’t count as a deduction, but out-of-pocket expenses related to your volunteer work may qualify.
Why Professional Help Matters
Missing out on deductions is one of the easiest ways to overpay your taxes. While online software can assist with basic filing, it rarely accounts for nuanced financial situations—especially for individuals with mixed income sources or small businesses.
Working with professionals who offer tax preparation Cary NC ensures that every eligible deduction is identified and claimed properly. They can help you stay compliant, avoid red flags, and reduce your overall tax liability with strategic filing.
File Smarter, Save More!
If you're filing taxes in Cary and want to make sure you're getting every deduction you’re entitled to, don’t go it alone. Seeking expert support can not only save you money—it can give you peace of mind.
Tirthankara Services LLC is a trusted local provider specializing in accurate and personalized tax preparation services. Their team understands North Carolina tax laws and works diligently to uncover all your eligible deductions. To learn more about how they can support your tax journey.