NEW YORK (PIX11) -- Unless you’re a professional, it’s difficult to know if you’re saving as much money as possible on your taxes.
To help you receive the maximum refund, PIX11 News asked a tax expert about some lesser-known deductions for saving you money.
David Gergis, a tax professional who runs Everyday Accounting in Hoboken, said self-employed individuals who work from home can deduct portions of their mortgage, utility bills, and more.
“Sometimes it is the obvious ones that they don’t realize, like their cell phone,” said Gergis. “We’ll do a percentage of what you use for business versus personal. So let’s say your bill is $100 a month. We can write off $20 every month.”
If you have kids, Gergis said there are a few options.
“If you have children who are under the age of 16, you are eligible for $2,000 per child,” explained Gergis. “It’s called the CTC - the Child Tax Credit.”
You can also write off childcare.
“Whatever the amount of dollars that you’ve been paying for the daycare or the help, we’ll put it on your tax return,” said Gergis.
For folks who file basic W2 forms and don’t qualify for special deductions, Gergis recommends putting money into a tax-deductible Health Savings Account. He also suggests taking a closer look at your W4.
“When you start a new job or anything like that, they give you a W4 form to fill out to see how much taxes you want withheld in your paycheck,” said Gergis.
He recommends picking one quarter of the year to withhold more per paycheck, saying it’ll come in handy during tax time.
“Put a little extra withholding in there, maybe $100, $150 out of your paycheck to maybe lower what you owe or maybe you’ll get something back,” said Gergis.
His client, Elena Lopez, said the additional deductions have made a huge difference.
“Honestly, it’s been a game changer,” said Lopez, who works as a food blogger. “Equipment, WiFi - I never thought that I could use that as a deduction. Turns out that I can, and it helps.”
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