Not only has 2020 been a wild and crazy year outside of the tax world, but within it a similar amount of crazy twists and turns keep occurring. First, due to the coronavirus pandemic - April 15 - the traditional filing deadline was extended back into July. While those who elected to file an extension enjoy the more consistent deadlines of September 15 and October 15, depending on the type of filing, the entire season has ranged for almost an entire year for the first time in history.

Add an election year on top and the craziness only magnifies a tax focus. Undoubtedly, no citizen wants to pay any more tax than they owe, but determining precisely what amount should be paid in each and every year can be tricky. With tax laws changing, adjusting income levels, and any number of eligible deductions being reported, the final figures can be difficult to derive. In fact, there are even some potential items which individuals may not even realize they could be benefiting from when filing their own return, including each of the following.

Gambling

Yes, you can deduct losses from gambling but there are few key things to keep in mind when reporting these numbers. First, all winnings must also be reported as income and the difference isn’t a simple net figure. In addition, individuals cannot take any deductions over their reported winning figure. 

Home Office

Recently changed, only individuals who report self-employment income qualify for an office-in-home deduction. In the event that you are eligible, there are a few different figures which could impact your taxable income, including a percentage of certain bills (i.e. utility, water, etc.). For the home office deduction in 2020, when many were forced to work from home, returns could experience an uptick in this deduction but there has been no change to the current qualifications, so not everyone who worked from home is automatically eligible.

Clothing

While not all clothes you purchase for employment may be eligible, there are some factors which make work attire tax deductible. Essentially, if the outfit is required for your job duty and cannot double for traditional wear outside of the workplace then it is likely you could have a deduction on hand. For example, teachers may not deduct outfits which may be worn elsewhere, but nurses who wear scrubs are likely able to claim this deduction.

If you are looking to receive additional tax assistance, a second opinion prior to completing a return, or just have other tax related questions, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing quality services and answering your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!