As we continue with tax season, I figured we’d go over some tax deductions you didn’t know about. Well, maybe not necessarily you but me.

I previously wrote a few posts on tax stuff so you can read them at List of Tax Deductions 2009, Tax Deductions for Self-Employed and Tax Deductible Expenses for Self-Employed Online Entrepreneur. But since there’s less than two months left to file your taxes and get your refund, I figured we’d cover a few more things here.

I’m constantly reading about tax stuff because it’s becoming more and more important to me as my revenue increases for my online entrepreneurship. As you guys know, we have to file for taxes on all the money that we make so deducting expenses become more and more important so we’re not actually losing out on money that should belong to us and not Uncle Sam.

Matter of fact, I don’t even have a Uncle Sam so why would we want to donate our money if we don’t have to. (By the way, that was my lame attempt to add an unnecessary joke somewhere randomly in this post)

Anyways, let’s get down to business. Let’s go over some detailed tax deductions we didn’t know about…

Write Off Travel Expenses – There are a few things about travel expenses and I’ve mentioned in the past but I would like to correct a couple of things I found as well. I mentioned that you could write off travel expenses if you’re moving outside of 50 miles to a new job. Well, apparently you need to have been hired prior to the move to qualify for writing off travel expenses.

Also, I mentioned if you attend a business meeting or convention (like Affiliate Summit) then you can write that off. But the key is the fact that you need to justify it as an business expense and it needs to be related to your business rather than a vacation in Las Vegas.

What I Didn’t Know… Say you have a spouse that wanted to attend the convention with you, well, you can write off their travel expenses and half their meals if they are an employee of your business or a legal partner. (And living with your girl/boyfriend for two months might not really qualify)

For everything you purchased on your trip, save your receipts and put them all in an envelope just incase you need to trace back to it.

Write Off Your Home Office – I mentioned you can write off just about anything for your home office (desk, computer, chair, etc) but there are a few things to avoid to trigger red flags with the IRS. Well, the main thing is to not purchase more than you make. For instance, don’t remodel the entire room with carpeted flooring, redo your walls, etc.

What I Didn’t Know… It’s not good to mix business with pleasure. If you purchase things for your business and you write it off then make sure you’re not using those same things for personal use. A good example would be purchasing a computer for business but also using it for personal use (playing World of Warcraft or something) because then you would have to figure out the percentage of the time you use it strictly for business.

Write Off Rent For Home Office Deduction – Every year you should be able to write off a portion of your rent if you are renting an apartment.

What I Didn’t Know… actually, I did know this but you can still write off home office space if you’re renting. I think there’s different ways of doing this and may require you to fill out additional forms so ask an accountant if you know one!

Write Off Personal Expenses (Including Clothes) – Again, don’t get things all twisted here, you simply can’t mix business with pleasure. A good example I read was the home office theme and you simply can’t deduct gardening right outside your “home office” because it doesn’t relate directly with your business.

What I Didn’t Know… Say you have to buy a suit to attend a business meeting, well, technically you shouldn’t be writing that off because you can actually wear the suit to other events not related to your business. Basically, any types of clothes you can wear outside of business then you shouldn’t write off.

Those are the main things that I can think of that really effects me directly and I’m sure it’s the same for many of you.

Next up, tax deductions and how we can avoid red flags/getting audited… stay tuned!