It’s that time of year again. Tax season is upon us, and many of us are wondering what we can claim on our taxes. While everyone’s situation is different, there are some general bills that you may be able to claim on your taxes. Claiming these bills can help reduce your taxable income, which can ultimately lead to a larger tax refund or a smaller tax bill. So, what bills can you claim on your taxes? Let’s dive in and find out.
Home Office Expenses
If you work from home, you may be able to claim some of your home office expenses on your taxes. In order to claim home office expenses, you must have a dedicated workspace in your home that is used exclusively for work purposes. Some of the expenses you may be able to claim include:
- Rent or mortgage interest
- Utilities
- Internet and phone bills
- Office supplies and equipment
- Home insurance
You can claim these expenses as long as they can be directly attributed to your home office. To claim these expenses, you will need to keep detailed records of all your expenses throughout the year.
Medical Expenses
If you have significant medical expenses, you may be able to claim them on your taxes. In order to claim medical expenses, they must exceed a certain threshold. For the 2020 tax year, the threshold is 7.5% of your net income. Some of the medical expenses you may be able to claim include:
- Prescription medications
- Medical devices
- Dental work
- Eye exams and glasses
- Physiotherapy
You can also claim expenses related to medical travel, such as parking fees or gas expenses. In order to claim medical expenses, you will need to keep all receipts and invoices for the year.
Charitable Donations
If you made charitable donations throughout the year, you may be able to claim them on your taxes. This includes donations made to registered charities, as well as political parties and candidates. Some of the charitable donations you may be able to claim include:
- Cash donations
- Donations of goods, such as clothing or furniture
- Donations of securities or mutual funds
- Donations of ecologically sensitive land
You will need to keep receipts for all charitable donations made throughout the year. Additionally, if you received any benefits in return for your donation, such as a gift or tickets to an event, the value of those benefits must be deducted from your donation amount.
Conclusion
There are many bills that you may be able to claim on your taxes. While everyone’s situation is different, some of the most common bills include home office expenses, medical expenses, and charitable donations. Keeping detailed records throughout the year can help ensure that you are able to claim all eligible expenses on your taxes, which can ultimately help reduce your taxable income and increase your tax refund or decrease your tax bill. So, gather your receipts and start preparing your taxes today!