As a working professional, you might have to pay more for things related to your career, including specialty attire or legal representation. Even though some of these costs can be substantial, you might be able to offset them by deducting them from your taxes. But how do you determine your eligibility and which expenses are tax deductible? What you should know is as follows. Legal Expenses That Can Be Written Off
You might be allowed to deduct any legal costs you paid for work-related reasons from your taxes. This includes the cost of paying attorneys or other experts for counsel, court appearances, or the resolution of employment-related conflicts. However, the legal fees cannot be for private concerns like a divorce or criminal charges; they must be directly tied to your employment responsibilities.
The IRS also permits you to write off legal costs associated with tax preparation, such as the cost of hiring a tax expert to file your taxes or settle tax disagreements. Legal payments associated with beginning a new job or getting a new one, such as those for negotiating a contract or preparing a non-compete agreement, may also be tax deductible. Clothing-related costs include:
Generally speaking, it is not tax deductible to pay for work-related clothing purchases or maintenance. This includes investing in the uniforms or specific attire needed for your line of work, such as safety gear for construction workers or scrubs for nurses. However, you might be eligible to claim a tax credit for the purchase of that apparel if your employer requires you to wear a certain uniform or outfit that is not appropriate for everyday use.
For instance, if you are a flight attendant and your employer wants you to wear a branded uniform that is not accessible to the general public, you might be able to claim the expense of purchasing that outfit as a business expense. However, it wouldn’t be regarded as a tax-deductible expense if the uniform is just a regular suit or dress that may be worn outside of the workplace.
Several expenses related to your line of work as a nurse may be tax deductible. In addition to uniforms and scrubs, you might be eligible to deduct the cost of professional association dues, continuing education programs, and nursing licenses and certifications from your taxes. You could also be able to write off costs associated with job hunting, including fees for resume writing or travel to interviews.
You might be eligible to deduct a laptop from your taxes if you use it for work-related activities. The laptop must, however, be used largely for business-related purposes and not for personal use, according to the IRS. You might be eligible to deduct some of the cost from your taxes if, for instance, you use the laptop to fill patient charts or communicate with coworkers while at work.
Finally, knowing which work-related costs are tax deductible will help you save money and get the biggest refund possible. Consult a tax expert or the IRS regulations for more information if you are unsure if a specific expense is allowable as a tax deduction.