He has a health insurance policy, he needs to be fed and I will even admit to clothing my poor dog. Why can’t I deduct him on my taxes? This is one of the great mysteries of my life.
But I digress; instead of ranting about what I feel should be deductible, I’ll share legally deductible items that are commonly overlooked.
- In-kind donations to organizations like Deseret Industries, Savers or Goodwill are deductible. You do not need to list your contributions in detail if the value of your non cash donation is under $500 for the year. However, we highly recommend that you obtain a receipt no matter the dollar amount donated. You will need written acknowledgement from the charity for gifts over $250. A picture of items donated is not enough proof of donation for the IRS. Make a detailed list of the items.
- Points paid when purchasing or refinancing a house are also deductible.
- Another great deduction is an IRA account. Even if you are covered by another plan, if your AGI is below $103,000 for 2019 (married filing jointly) (covered spouse), you still qualify for a full IRA deduction.
Please call MyCPA to discuss your specific situation. We are happy to review with you all of the tax deductions you should be taking advantage of. Unfortunately, your dog is not one of them. His unconditional love is going to have to be benefit enough.
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