Tax season is starting get underway for a lot of accountants and tax-paying Americans everywhere. Some people tend to wait until the last minute to figure out what they owe the government or what they should be getting back as an overage. Unfortunately, in a lot of cases the numbers we think we are dealing with end up being much different once all the forms are filled out. This year, make sure you are getting back everything you can by thoroughly examining all your expenses and income from 2012.
You may have received disability payments last year due to an injury. Depending on how you pay your disability premium, you may be able to deduct that money from your taxes. If your employer deducted the premium from your paycheck each week, ask how it was deducted. Was it on your pay amount before or after taxes? If you paid your premiums with after-tax dollars, they will not be deductible to you. However, the benefits you received will not be treated as taxable income either.
Talk with your insurance agent to see how all your insurance polices will affect your taxes for last year. You may be surprised at the difference one little conversation could make for you. You may not realize that if you drove your car for business purposes, you may be able to deduct mileage. Or if you had to pay an excessive amount of health related bills last year you may be able to deduct them as well.
Doing your taxes may not be your favorite task of the year, but it could end up being a little less scary if you know you might be getting a little something back from the government. Give us a call to see if there is anything you can deduct in regards to your insurance policies. You may be pleasantly surprised.