A dentist is one of the best professionals you can turn to if you need quality dental care. The IRS allows dentists to deduct a variety of expenses on their tax returns, including research and development, advertising, and professional dues. But are there any other tax deductions that dentists may be overlooking?
Yes, there are plenty of tax deductions that most dentists overlook. These deductions can help offset your income and take home what you make. In this article, we’ll take a look at some of the most common dental deductions that dentists may be eligible for.
Tax Deductions That Help You Keep What You Rightfully Make
There are a number of tax deductions a citizen can claim based on specific criteria. Some of these deductions apply only to dentists, while some others are universal. If you’re a dentist who’s looking to save your tax, speak to a professional dental accountant like Sigma to understand how our approach can help you save tax.
Let’s take a look at some unknown deductions you can claim.
1. Expenses Associated With Moving For Your First Job
Did you move more than 50 miles from your home for your first job? Firstly, congratulations on your new job, and secondly, did you know you can write off these expenses? All you’ll need are receipts to prove the expenses, and you can save yourself a chunk of change.
2. Donations Made Out Of Pocket
If you do any sort of volunteering work or charitable work, you can claim these deductions (Up to 60% of your gross income) under the new tax regime. The deductions include travel expenses, lodging, meals, sponsoring sports teams, and much more.
3. The Cost Of Job-Hunting
Job hunting is expensive and can take a toll on your pocket. If you’re moving to a new practice, you can claim the expenses associated with job hunting, such as costs relating to resume preparation, employment agencies, air travel, taxis, printing costs, and much more. You are eligible for this deduction even if you didn’t get the job.
Do note that you can get a deduction only if your miscellaneous itemized expenses exceed 2 percent of your adjusted gross income.
4. The Cost Of Child Care During The Summer
Many parents don’t know about this deduction, but if you have children, then any expenses related to child care during the summer can be claimed as a deductible.
5. Continuing Education Credit
If you’ve been considering learning something new to improve your dental business, like a course on Marketing or Finance, there’s excellent news for you. You can claim a 20% credit towards your tuition paid up to a maximum of $2000.
You can also claim this tax credit if you have a spouse or a dependent and you pay for their education. The only caveat is that the institute should be on the list of eligible institutes that qualify for this tax credit.
6. Tax Credit For Expenses On Child Care
For every child of yours under the age of 17, you can claim $2000. However, if you have 0 tax liability (Almost impossible), you can still claim $1400 towards child care.
7. State Sales Tax
As taxpayers, you are eligible to deduct state income or sales tax from your total taxable income. This is a relatively new deduction, and that’s why a lot of CPAs and tax consultants aren’t aware of it.
On the other hand, a professional dental CPA can help you avail of this tax credit and take home what you truly deserve. All we need to help you is your receipts, and we will take care of the rest.
8. Lost Deduction From Prior Years
If you weren’t aware of these deductions or didn’t claim some of these in the previous years, there’s still scope for you to recoup these. Many deductions, if not used in the filing year, can be carried over to the next year and claimed.
Speak to a professional dental tax consultant to understand how you can claim these for yourself.
Frequently Asked Questions
A medical and dental expenses tax credit is a credit that helps you reduce the Federal tax owed by you. Medical expenses like the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments can be claimed to get an additional tax credit.
Any taxpayer who itemizes deductions on your tax return and has spent any amount of money towards medical or dental wellbeing and has the receipts to back it up is eligible for this tax credit.
There’s no straightforward answer to these questions, and it completely depends on how your CPA files your taxes. For example, an experienced CPA might be able to help you deduct your medical and dental expenses if you qualify. This handy questionnaire by the IRS on tax deductions can also help you determine if you can claim these expenses.
A professional CPA can help you apply for these credits and claim them. Speak to Sigma today to learn how we can assist you in optimizing your tax returns.
We hope this answers all your questions and doubts. If you’re looking for a professional dental accountant in Maryland, then please feel free to drop by our office for a free consultation and guidance session. We’re eager to meet you!