Tax season can be stressful, especially if you anticipate owing any money. Fortunately, the IRS offers a number of ways to minimize your tax liabilities. The key is making sure your tax return reflects every legitimate deduction that you qualify for. Even if you’ve already accounted for child care costs, medical expenses, and retirement contributions, there’s still a chance you have overlooked something that will further reduce your obligation to Uncle Sam. Here are a few potential deductions you may not know about.

Unusual Deductions You Can Take to Lower Your Tax Bill

1. Sales Tax

Your federal tax return gives you the option of deducting sales taxes. If you made a big purchase in the last year, such as a vehicle or engagement ring, deducting the sales tax can provide a significant tax break. This is only available if you itemize your deductions. 

2. Military Relocation Expenses 

In the event you’re in the military and given orders that require you to relocate, you can deduct the moving expenses. The IRS allows deductions for the cost of transporting your belongings to your new destination, as well as the cost of parking or tolls. 

3. Losses Due to Theft or Casualty 

Certain losses you experience due to theft, vandalism, a natural disaster, or a motor vehicle accident are tax deductible. Only the amount that wasn’t reimbursed by your insurance company can be accounted for on your tax return, and the amount for each event must equal more than $100. To determine how much you’re entitled to deduct, you must complete the Casualties and Thefts form. 

4. Expenses for a Service Animal 

If you are physically disabled and use a service animal to help you better participate in everyday life, you can deduct the related expenses. This includes any costs associated with buying, training, and maintaining the animal. You may also deduct costs for their food, grooming, and veterinary care. Deductions are only allowed for recognized service animals and not those used for emotional therapy. 

If you are looking for ways to lower your tax bill, the best step you can take is to hire professional help. The accountants at Selph and Friday, CPA stay updated on all the latest tax laws and know how to find every deduction that applies to your situation. Since 1986, they have been providing Texarkana, TX, individuals, families, and business owners with their tax returns. Call (903) 792-0281 to schedule an appointment or visit them online for more information about their services.