No one likes to file their taxes when tax season rolls around, but deductions can make the process a little less painful. Deductions are used to reduce your taxable income, and there are literally hundreds of deductions you can take. These range from well-known deductions, like mortgage insurance and income taxes, to wild and crazy deductions you wouldn’t believe.
Here are ten odd tax deductions you didn’t know about—but might save you a little money next tax season.
10. Smoking cessation. The benefits of quitting smoking go beyond your health. You can deduct smoking cessation tools, from nicotine gum to hypnosis, on your taxes.
9. Pregnancy tests. If you find yourself in need of a pregnancy test, don’t throw away the receipt—pregnancy tests are one of many legitimate tax deductions.
8. Certain trees. In Hawaii, residents who grow specific trees can take advantage of the “exceptional tree” tax deductions and deduct up to $3,000 off each tree for maintenance.
7. Wigs. People who have lost their hair due to medical treatments or illnesses can deduct the cost of their wigs from their taxable income.
6. Breast Implants. Women who have had mastectomies may be eligible to write off the cost of breast implants after they recover from breast cancer under very specific circumstances. If breast implants after a mastectomy are critical to you maintaining your career (for example, if you’re a lingerie model) they can be written off when you file your taxes.
5. Donations of any kind. Most people know they can deduct monetary donations, but the tax benefits of being charitable go beyond just money. You can deduct the cost of donated clothing, furniture, and even the ingredients used to bake a cake for a charity.
4. Moving expenses—for your pets, too. You can deduct your moving expenses if you’re moving for a job, and that extends beyond just moving your home and family. Relocating your pet can be costly, but you can deduct it from your taxes under some circumstances.
3. Childcare during volunteer work. If volunteering, whether on a regular basis or a single time, requires a babysitter to watch your children, you can claim these tax deductions.
2. Alimony payments. Don’t feel too bad if you’re required to pay alimony following a divorce, because you can deduct your payments when you file. Your ex-spouse, however, will have to claim them as additional income.
1. Just about any business expense. If you can prove a purchase is used for the benefit of your business, you can deduct it from your taxes no matter how strange. Actual examples include guard dogs and their food and vet bills to shampoo and towels for hairstylists. Note: this only applies to business owners.
The next time you file taxes and want to deduct something that seems a little out of the ordinary, go ahead—chances are someone has successfully deducted something even weirder. Just make sure you keep detailed records of your expenses.
Did you know mortgage interest is tax deductible too?
It’s true: the interest you pay on your mortgage can be written off on your taxes in many cases, so if you’re renting, that’s just another great reason to own a home instead. You might be surprised at how affordable home ownership is! Mortgage loans are available even to folks with less than perfect credit and some require a down payment of just 3.5%! Want to see how affordable home ownership can be? Give one of our expert Personal Mortgage Advisors a call for a free, no obligation mortgage consultation at 877-480-8050 or submit a mortgage loan pre-qualification request and we’ll contact you!