Workaholism is a real condition. While it can contribute to successes and progress, it can also wreak havoc on your mental well being and your relationships with those closest to you. If you don’t know if you’re a workaholic, consider this: when you’ve finished a to-do list for the week and you have the opportunity to sit and relax… do you consider working some more? It sounds worse than it is, but there’s a compulsion to not stop. When you finally have time to yourself, you think, “Well, what else would I do with this time?”

Entrepreneurs are among the most susceptible to workaholism. They have a tendency to fall into a cycle of working. Part of this is due to the fact that building a business from scratch tends to mean it’s near and dear to your heart. Add to this the fact that you can make a living by keeping it alive and you think this is what you should be doing. While this work ethic can contribute to your business’s growth, there’s a chance it’s doing more harm than good. If working constantly becomes your norm, then when you need to take time off, you can feel worse. Imagine taking time off to watch your child’s graduation or you get sick and need to take a couple days. Suddenly, work continues to pull you back and you’re not able to be present.

Moreover, some of the best thinkers know that to effectively tackle a problem, you need to take breaks. If you’re constantly working at something, you’re not giving yourself perspective or room to breathe. It’s why so many mental health exercises include “deep breathing” where you focus on one thing happening in the present and slow down. With a business, it’s easy to get lost in the weeds, but taking breaks is good and when you return, you’re able to get that 30,000 foot level view.

This time of year, it’s especially important to budget for a break. Turn off your computer, silence your notifications, and return to work in the New Year.

Holidays can put strain on the problem

Work’s only part of the problem. While marketing has increasingly contributed to this idea that this is the most joyous time of the year, myriad studies confirm people tend to suffer depressive feelings during the holidays due to:

• stress
• fatigue
• unrealistic expectations
• over-commercialization
• financial hardship

Throw in the pandemic and this is a tough time for anyone. With that in mind, there is something you should consider for yourself, that’s cost-effective and a good use of your time during the holidays: investing in some self-care.

So I should take time off work, but how can I take care of myself?

First, if you’re taking the last week off (which is becoming more commonplace), then reinforce healthy boundaries between work and life. In business, there’s a propensity (especially in unhealthy work environments) to treat “abbreviated weeks” as an opportunity to cram 40 hours into fewer days. If you’re taking additional time off, set the expectations with those in office. You should not aim to get everything done, so delegate appropriately.

Nationally recognized holidays should be treated as such: holiday. Whether you’re going on a vacation — or reserving time for a stay-cation, this should be expected time off. This is true if you’re an employee of one, working for a huge organization or running a startup with a small but healthy amount of employees.

Burnout is real and frankly, if you’re spending the run-up to the holidays stressed and cramming to deliverable end of year results, then the first thing you (and likely your employees) will do as you usher in the new year is reevaluate if this (your job) is somewhere you want to be. Don’t simply tell employees, “we’ll get through this year and then things will be better.” Instead, enforce that all employees turn off Slack, set their work email to “away” and only — under the strictest of definitions — answer a work call in the event of an emergency.

Enough about work, how else can I unplug?

Focus on Being Grateful

There is an entrepreneur mindset that can lead to impatience. You may be one signature away from securing a client or completing a work order, but like most other businesses, you’ll need to wait until after the holidays. Rather than worry about what’s to come or rushing through the holiday, be in the present, content with the state you’re in. Ambition doesn’t die overnight, there’ll be plenty of work to do when you and the rest of the country reopen.

Give Yourself Time to be Alone

Gift yourself some ‘me time’. Many people this holiday are seeking to regain some normalcy, traveling and hosting parties. However, given the pandemic and the stressful economic landscape, take this opportunity to decline invitations. As yet another silver lining of the pandemic, you don’t need an excuse to decline invitations. Steal yourself away from further commotion and chaos and come up with activities that make you invest in yourself; try something new.

Work Out instead of Working

Exercise whenever possible. Working nonstop is draining and especially in the startup world, it’s all too easy to put your “physical health” in the “important but not urgent” quadrant of your day-to-day. With the national holiday however, why not tend to that quadrant in particular. If everyone is shut down anyway, focus on exercise and eating healthier. Take care of yourself to ensure you’re at your peak when the New Year starts. You may enjoy the momentum and energy from “working,” but “working out” will provide the same (if not more) endorphins to feel energized, empowered and optimistic. Even if you do decide to travel, try running around the block or following some exercise videos.

Invest in Yourself

Take an online course to develop yourself. During the holiday, you may be tempted to only buy gifts for others, but consider an investment in yourself. Book yourself an online course to pick up some new skills. Many platforms offer affordable courses online courses (with discounts around the holidays). Learning something new will strengthen your memory, lead to innovation, and potentially increase your efficiency.

Despite the holiday cheer, it can be a rough time of year for many. And whether your business has suffered with COVID-19 or is on the cusp of launching, sometimes hitting “pause” is just what we need for clarity. For many, there’s a “ready, fire, aim” around this time of year, so take a breath, so you can emerge in the New Year rejuvenated.

Photo by Kira auf der Heide on Unsplash

The post Stop Working & Budget for a Break: an Entrepreneur’s Guide to the Winter Holiday appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Yes, inflation is worsening; yes, the cost of goods has increased asymmetrically to the minimum wage increases; and yes, real estate costs more — in some cases, owning a home has become untenable. Even before all this, in 2017 it was reported that over 2/3rds of Americans could not afford a surprise bill of $500 or more.

The solution is not simply “make more money” or “move somewhere cheaper”. It’s prioritizing expenses. Children who learn to save when they’re young have an advantage growing up. Here are steps they can take to teach children how to save money.

Have conversations with children about money

The first step is to discuss money. This can start as early as 5 years old as kids begin to understand the exchange of goods/services. Teach them how it affects them before they ever make any money themselves. Some financial advisors have recommended asking kids hypotheticals. Start with “what do you want to buy when you’re older?” or “If you had a hundred dollars what would you spend it on?” These open-ended questions can form a foundation for kids to understand what the value of a dollar is.

For example, if their response is “I’d buy a puppy,” then it begs the question as to how they’ll afford food, toys, a leash, and vet appointments. This can help shape their understanding of a one-time purchase vs recurring charge.

Identify a good savings account

Although it depends on the child, typically paper money isn’t the best way to teach your kid about saving. Paper money can get lost and keeping it in a piggy bank or shoe box teaches more about safe keeping than it does about saving.

To capitalize on digital, give your kids access to view their money in a savings account. So long as they can earn revenue, they’ll be able to watch their money grow over time. Earning interest can help kids and young adults to understand the idea of compound interest. 

While picking a savings account for your child, search for one that has little (and preferably no) monthly charges. And find something with a high return.

Encourage them to set goals

Many parents are familiar with the marshmallow test, wherein you offer the child a marshmallow and set rules. If they eat it while you’re gone, that’s it, however, if they wait until you return, then they can get two. Many children pass the test as early as 2 years old. They understand the concept of setting goals so it’s important to compound that lesson.

Setting goals is essential as it helps children learn the significance of postponed gratification.

Match saving with spending

Part of educating children on how to save their money is educating them on how to spend it. Think about complementing a savings account with a spending account or an application that allows parents or guardians to restrict or observe spending. 

These features enable children to explore with money and enforce restrictions to assist them with dealing with their spending. Once children (and adults) have the discipline to control their spending, they find it easier to reach their goals in savings. 

Supporting children to learn how to save money is a significant part of cultivating personal finance. It can enable children to feel comfortable with money and assist them in figuring out how to adjust how they’re spending to achieve long-term goals.

Sure “more money” can help, but if spending habits aren’t formed early, it can turn into an ever-ratcheting problem. If your kids know how to save, it’ll reduce stress and prepare them for the future. For instance, they don’t need to be stuck in a job they hate if they have the savings to afford them time to quit and find a new job.

Photo by Braňo on Unsplash

The post Teaching Your Kids To Save Money  appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

1. Plan Your Meals 

Plan your weekly meals and buy only the ingredients you need. Planning your meals makes you less likely to waste food. Moreover, you may enjoy stocking up on supplies to make multiple meals, but chances are high that you’ll get tired of the same meal day in, day out, resulting in ordering more takeout and more groceries going to waste.

By only buying what you plan on making for the week, you avoid wasting food and being tempted with takeout. Furthermore, by making a list of what you need to buy, you’ll be able to avoid impulse buys or overspending.

2. Cut Out Unnecessary Spending

The simplest way to do this is by taking stock of where you’re spending your money. Don’t overcomplicate it with too many categories, but break it down into recurring payments (rent, utilities, insurance, car payments, etc.), separate groceries from takeout, and take note of any subscription services you have.

Once you’ve separated your “recurring/must-pay” spending from “nice-to-have” spending, you’ll have a better idea of where to cut back.

Frequently, one of the first things people discover is how much they’re actually spending on subscriptions. Most people don’t need all major streaming services all at once. Moreover, some subscription services still give the illusion you’re saving money. As an example, while a subscription to monthly razors may seem like a reasonable subscription, in two years time, such a subscription winds up costing the same as a high-quality reusable razor.

3. Look for Ways to Save

For example, instead of driving to work or school every day for an hour each way, try cycling or walking. In the COVID era, advocate for yourself and request work from home days to combat rising prices in gas. If your company wants to retain talent, they’ll oblige.

If you have a job that requires you to be in the office (such as those in construction or medical field), then consider carpooling with people near your area.

Meanwhile, in your personal life, consider all purchases by their price per use. If you’re wearing shoes every day, it makes sense to consider and invest in a high-quality pair. Meanwhile, if you’re looking at a seasonal jacket, consider how often it’ll be worn and if it’s worth it.

4. Capitalize on Cost Saving Apps

There are numerous, accredited apps specifically designed to improve efficiency and productivity. For instance, GasBuddy will show you where your nearest gas stations are and who offers the best price. Driving an extra 2 minutes may save you an extra $20.

Similarly, most people don’t notice how much time they spend on their phone or “window shopping”. And it’s easy to get sucked into an app like DoorDash or UberEats. For apps that compell you to spend money, set a time limit on them so your phone will shut you out before you sink more money into them.

Image by chris s from Pixabay

The post Ways To Save During Inflation appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

401k Options

One thing you can do now, to help save for retirement is to use your 401k plan. Specifically, you can use something called a “partial in-service rollover.” So essentially, what it means is that you take some of the money you’ve saved from your 401k, and then put it into an IRA before you plan on returning and while you are currently working. This will allow you to diversify your investments and find options that are more tax efficient.

Life Insurance

Another approach is to take out a life insurance policy. You don’t have to do this for your descendants, you can actually just do it for you instead. This is because it will make it so that you can borrow against or just withdraw the value of the policy you get. So you can then get cash that’s tax-free income by pulling it out against the policy. This will give you a lot of flexibility when it comes to taxes later in life and you will have to worry less about taxes as a result.

Note: Pulling out too much money can cancel your life insurance policy and some specify that you can only pull out what you’ve put into it in premiums, however it can ensure your family is safe and you can usually get your premiums back if you outlive your policy.

Roth IRA Conversions

A Roth IRA is a special kind of savings account that gets funded from after-tax dollars while you’re actually working. They have exemptions, like from RMDs, and you don’t have to pay taxes on them at all once you retire. If you convert the Roth IRA, you’ll be paying taxes early so that you’ll have more around when you are actually retired and are looking to take out money later on. It may not be for everyone though, depending on your situation, so it’s important to talk to professionals about it before you commit.

Annuities

If you go for a fixed index annuity, then you can make sure that the amount you put in will grow quickly. It also gives you some protection against having losses in the market indexes. You get inflation-adjusted amounts based on the annuity. These options also make it so that you get amounts to guarantee that you can have the five daily activities of living,” which include walking and getting to the bathroom, eating and others. This way, you’ll be able to pay for your long-term care no matter what happens to you in the long run. This will also have benefits that let you stay clear of taxes.

The post How To Reduce Taxes For Retirement appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

One of the most common deductions that you can use whenever you plan on renovating your home is mortgage interest. This is a percentage of the mortgage payment you make during the year. The interest is an additional percentage that you pay on top of the principal balance of the loan. With mortgage interest, you can deduct several thousand dollars per year which can help you make up for renovation expenses as well as lower your overall tax burden.

Another deduction that you can take advantage of with renovating your home is energy efficiency upgrades. These are expenses that are associated with making your home reduce energy consumption. For example, installing solar panels to lower your heating and air conditioning bills is one way to lower your tax burden. You can use a credit where you can deduct 30% of the cost of your energy efficiency upgrade.

Whenever you are looking to renovate your home and lower your tax burden at the same time, general improvements are also something that you can deduct. Updating things such as cabinets, countertops and appliances will cost money but make it more valuable. So when you sell the home, you will increase your overall equity and profit. Making general improvements will allow you to lower the tax burden as you will likely pay less in taxes.

Another one of the most valuable deductions that you can use is depreciation. This is a deduction in which you claim the reduction in value of a certain asset. In some cases, parts of your home will go down in value which can help lower your tax burden. You claim the reduction in value on things like appliances and fixtures. Some of these depreciation deductions can lower your tax liability by a few thousand dollars.

When it comes to claiming tax deductions when renovating your home, office improvement is another valuable deduction that you can make. If you make improvements to the area of the house where you conduct business or work, the expenses associated with that can be deducted. With these expenses, you will be able to help lower your tax burden by up to a few thousand dollars during a given year. These expenses can include repairs as well as improvements to structures such as the walls and other areas such as the closet.

Owning a home provides you with many benefits as you may already know. When it comes to making renovations, you will be able to take advantage of even more benefits that will help you lower your tax liability during the year. Therefore, it is important to keep these deductions in mind whenever you plan on making renovations on your home.

The post Cornerstone Deductions You Can Make While Renovating appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

How are people saving more?

Americans are saving more money now than before the pandemic for two main reasons:

1. An increase in income from government aid and
2. a decrease in spending from business closures and safety concerns.

Government aid through programs such as unemployment benefits and stimulus checks paid directly into citizens’ bank accounts mean that many people now have more money in their accounts than they did before the COVID-19 outbreak.

The second main reason accounting for increased savings is that their spending has decreased – more than half of Americans have reported such a decrease. For health and safety reasons, some are choosing to abstain from travel and restaurant dining, which frees up a substantial portion of disposable income for those individuals.

People are keeping more money than ever in their bank accounts to help themselves feel more financially secure during this time. Unfortunately, that reluctance to spend could have adverse effects on the recovery of the economy since a consumerist economy necessitates spending from the public.

Why are people saving more?

That’s how people are able to save more money than usual during the pandemic, but why are they doing so?

Some experts attribute the desire to save more during these times to the uncertainty of the strength of the economy in the future. While Americans may have more money in their pockets now because of decreased spending and increased aid from the government, people are not confident that additional income will persist in the future. Something that people have learned during the pandemic is just how quickly circumstances can change; now more than ever, you can have your job one day and be laid off the next.

Around 25% of Americans have struggled to make at least one payment because of coronavirus, whether that is a credit card payment or payment for rent or a mortgage. That struggle can largely be attributed to losses in household income. Some examples of a loss in household income include being laid off, being scheduled for fewer hours than usual, or even being forced to take unpaid time off.

With their increased savings, people have either been keeping that money in their bank accounts, or taking the opportunity to pay down any debts that they were previously holding on to. About one-third of people who have decreased their spending have been able to pay down their debts faster than they would have otherwise been able to, and over half of people who are now spending less because of coronavirus are able to keep more money in their savings accounts.

While the coronavirus pandemic has indubitably had many negative impacts for many industries and individual families, the increase in savings for many Americans is an unexpected, but welcome, silver lining.

The post The Paradox of the Pandemic: Savings Increase During Economic Downturn appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Smart spending means getting the best deal, buying what you must have and staying conscious of where every penny goes. As the old saying goes, the smarter you spend, the further your money will go. So how do you break bad spending habits and spend better?

Set and stick to your goals – As the old adage says, if you do not know where you are going, any road will get you there. The same can be said with spending habits; if you do not have any goals set in terms of your financial standing, you will always fall for anything that comes your way. It is therefore, advisable that you set both short term and long term goals that will see you through a certain period. Ensure that you always limit yourself to prioritized and realistic goals that will set the pace for the future.

Change the notorious financial habit – If you are a ‘big’ spender, then you will notice that there is always that one financial habit that keeps you spending without planning. You will need to assess your spending habits to pick out and reduce this habit or stop it altogether. Once you master the art of changing this major habit, then you can replicate it to the other areas of your expenditure.

One of the best ways to change your spending habits is by keeping a log of what you’re spending. It’s not simply impulse buys, but some are ingrained. If you have a rough meeting at work, maybe the coffee shop just down the street is your go-to stop. Notate your expenses so you can track what triggers you to spend more.

Do enough research before shopping – If you love shopping, then it may be time to take note of how you do your shopping. Do you simply go to the market and pick whatever pleases your eye? This may be one of the ways you are losing your money. Before shopping for anything, take your time to research their prices while at the same time comparing quality. This is even easier in the digital age where all you have to do is go online and compare the prices from different stores.

Stay away from your spending triggers – There is always that place you will go and end up spending way more than you had planned. On the surface, this may sound like we’re talking about casinos, but it’s much more than that. If you go out to the movies and always buy candy (or even buying candy in advance) or always buy a snack as you grocery shop, these are all areas where you may be adding to the initial cost of a trip when smaller purchases are adding up. Buying that new album may not seem like a big deal, but if you don’t jot down that you did it, then you may forget that it was only 2 weeks ago that you made that purchase and then purchase another new album thinking it’s a new day, a new budget.

Triggers aren’t limited to places either, as this can also apply to some people. Everyone has a friend who intentionally or unintentionally, entices you to spend more than you had budgeted. For better spending habits, it is advisable that you stay away from these triggers or mitigate as best you can.

Everyone will always have that spending habit they hate to love. By first determining the leading habit that needs to go, you are already on the right track. However, this is not to say treating yourself once in a while is a crime. It only becomes a problem when it turns into a habit that slowly drains your finances unnecessarily.

The post How to Create Better Spending Habits appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

One of the key challenges with crafting your startup budget is, you don’t have past data. A budget can help ensure you’re profitable, taking into account forecasted income and expenses — frequently called profit and loss statement. Before you start, think about why you need to spare some time to create a small business budget. You can use a budget for other reasons other than for bank financing. 

So, for starters, what is a business budget? 

A budget is a plan that stipulates how you will spend your finances every month or year. 

Managing a budget will benefit you in the following ways:

• Project the revenue you expect.
• Plan how and where to spend that income. 
• Deduce the difference between reality and plan.

What makes an incredible budget?

A good budget needs to be flexible and simple. If situations change, you can adjust your budget to give you a clear, panoramic picture of your financial standings. 

The best way to budget is to examine all your income sources to know what money your business makes on a monthly basis. When you make money, ensure that you calculate the revenue. Revenue is calculated as all the income that your company collects before you deduct expenses. What remains after subtracting expenses is profit. 

Once you know all your income channels, determine your monthly income. You should do this for several months and also for the last 12 months, but as long as you have sufficient data.With sufficient data, you can calculate the performance of your monthly income and look for seasonal patterns. 

Looking at the Research Costs

Researching on costs will help you prepare for unexpected events. Unexpected expenses for instance, sets you off track and make it harder for you to achieve your goals. If you set your budget for a given cost and you discover that you need more money later, then the profit being realized from the sales will be reduced. This places your business in a bad financial state because you will have to figure out how you will increase profit and revenue to offset the high expenses. 

Have a Contingency Fund for Unexpected Expenses

Whether you have business experience or not, you definitely know once in a while costs do not come around when it is convenient. These costs normally come up when you do not expect them, more so when you have a tight budget. You should stop unexpected costs when you are creating budget for your business by ensuring you have additional money on hand and plan for such contingencies within the budget.

While it is easy to spend your additional income on variable costs, place some cash aside as emergency fund. This way, you will be prepared if equipment breaks down and requires repair or if you want to replace inventory damaging by flooding. Alternatively, you can consider a small business loan. However, many options are better than fewer.

Prepare a Profit & Loss Statement

Once you have all the information above, you can now prepare a profit & loss statement. 

The post Creating a Budget for Your Small Business appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Starting your own business is an exciting time in your professional career. One of the most important things to do in the early days of your business is to save money. Here are some ways you can save money on your own business:

1. Work Out Of A Spare Room

Working from home is the number one cost saver. Ideally, if you can convert a room or garage into an office, then you will be able to deduct a portion of your home as an essential part of your business. Of course, this also saves time too since commuting involves heading to your office. Additionally, everything you use to decorate this space becomes a business expense. Overhead lighting, desks, file cabinets, computers, even a portion of your internet bill. When finding business expenses, spare no expense and fill your office with all the tools and technology you need to run your business effectively.

Of course, if customers or clients will be visiting your place of business, then you may want to consider an office outside of the main house. Choosing a location such as a remodeled garage, basement or garden office with a separate entrance may be less disruptive to your family — this is especially important for teachers and tutors who expect regular visitors. If that’s not an option, you can always meet a mutual location for clients and then — guess what — that meal or golf session becomes a write off.

2. Buy Used Equipment

One of your biggest expenses is your equipment. The advantage of purchasing used equipment is it prevents you from overspending on equipment that you ultimately do not use. What’s more, chances are your equipment — no matter how new — will be outdated and it’ll become another expense next year.

Saving money on older models of any technology will really help your wallet. Of course, we’re not saying purchase an archaic system, as you don’t want to decrease productivity with a slow machine. Instead, create a checklist for everything you may need. Then visit yard sales, as well as used technology stores (or go online) for items you may need.

3. Watch Video Instruction

There is a plethora of free video instruction by online professionals. You can find experts who aptly demonstrate each step of building your business. Need a website — the best, passive lead generation tools — then follow a how-to on YouTube.

Need a logo? Check out Fiverr. Business cards? Of course there’s Vistaprint.

There are plenty of experts who can teach you how to code or master photoshop or manage an app. These online experts can save you money and teach you skills that you need for your business, especially if you want your business to grow. Eventually, you may want to hire an expert for advanced work, but for now, learn the basics and get the job done.

Speaking of hiring however…

4. Hire Contract Workers

When you are first starting your own business, you have to wear a lot of hats including product producer, marketer and payroll specialist. Eventually, you’ll have to relinquish some of those tasks because you prefer to focus on what you are more interested in working on. That, or you’ll need an experienced person to handle a challenging project.

Before hiring out full time employees, save your some money and utilize contract workers. Contract workers can actually live in your area and come into your work environment. Another option is to hire someone to work on a project virtually. There are many online sources where you can hire out contract employees to take care of graphics, payroll or other tasks.

5. Free Software & Apps

There is a cornucopia of software and apps that can jump-start your business and preserve the bottom line — this isn’t even considering the freemium tools out there as almost all apps offer deluxe versions that can give you all of the app’s high tech goodies. The benefit of the free software is you can see how often you use it and if it’s worth investing in the full price.

The types of free software and apps can run the gamut of your business needs including: social media scheduling, payroll processing or team communications. For images there are photo editing software as well as software for logos, infographics, and animations or video. There are even free business form templates and apps for online note taking.

As your business grows, you will want to take advantage of analytics to help discover what’s working for your business and what’s not. This way you can increase your efficiency.

The post How To Save Money Starting Your Own Business appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.

Going Green

Did you make any upgrades to your home this year? If so, did you take advantage of modern, energy-saving technology? If you did, you may be eligible for a tax break. For example, if you had energy efficient windows installed, this could mean a tax break of up to a few hundred dollars. Similarly, if you had a new and more energy-efficient furnace installed, you could be eligible to knock a few hundred more off of your taxes. If you’re an individual filing your taxes, take a look at part two of Form 5695 and see if you qualify for the Nonbusiness Energy Property Credit.

Job Hunting

If you found yourself seeking a new job this year, you may be able to claim some credits related to your job hunting expenses. While there are very specific rules related to whether you can claim any tax breaks from your job hunt, it’s worth looking into. If you are looking for new employment in your current field, make sure to keep detailed records of everything you have to spend.

For example, any fees you incur for resume preparation, or for employment agencies, are potentially deductible if they exceed 2 percent of your adjusted gross income. This is certainly possible if you are not working much; just make sure to keep a detailed record of all costs related to job-hunting expenses. This includes everything from gas mileage for driving to interviews to printing paper for resumes.

Education

Even if you graduated college a long time ago, you might just be eligible for further tax breaks if you are looking to continue your education. Whether that means signing up for one night class, or going back to class full time to earn an advanced degree, you can often write off up to $2,000 per year. This does depend on how much you have spent on further studies, and it also depends on your income, but is worth looking into as your age does not matter.

Child Care Costs

If you have children, there are a few lesser-known tax breaks you can take advantage of. For example, if you do charitable work and need to hire a babysitter while you’re doing it, you can deduct the cost of that babysitter. While you may be aware that you can deduct day-care fees while you’re working during the school year, did you know you can also deduct the cost of summer day camps once school has ended? As with all the other items on this list, just make sure to keep a detailed record of everything.

Medical Care

Deducting the cost of medical care can get complicated, as what deductions you can make varies widely depending on the work you do and the medical insurance you make use of. For example, if you are self-employed, you can usually deduct 100 percent of your health insurance costs. If you are not self employed, you will need to reach the AGI threshold in order to begin deducting itemized health care costs. This is easier to do if you make sure to keep track of miscellaneous costs such as mileage when traveling to doctor’s appointments.

The post Tax Breaks To Help You Save appeared first on Huddleston Tax CPAs | Accounting Firm In Seattle.