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Deduction Dangers, Part 2: Job Expenses

Find out which job expenses are tax deductible -- plus, some costly mistakes to avoid! 

By
Laura Adams, MBA,
Episode #261

How to Maximize Your Tax Deductions

If you fall short of having enough total unreimbursed employee expenses to meet the 2% income threshold, delay paying as many expenses as possible until the following tax year. Bunching up deductions in a single tax year, instead of spreading them out over 2 years, maximizes their value. 

For example, wait and buy new uniforms in January instead of in November or December. That way you give yourself the chance to accumulate enough expenses to claim the deduction next year.

Or if you know you’ll have plenty of job-related expenses to qualify for the deduction in the current year, prepay expenses like professional dues or the cost of new tools. That way you rack up as many money-saving tax deductions as possible. 

Bunching up expenses typically means you’ll only qualify for a tax deduction every other year—but that’s better than not qualifying for the deduction at all! 

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a trusted and frequent source for the national media. Her book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show. 

 

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