Occupation-Related Deductions, Credits Often Left Unclaimed
KANSAS CITY, Mo.--(BUSINESS WIRE)--Job-related tax deductions can often save taxpayers thousands of dollars, but the deductions are often left unclaimed according to H&R Block (NYSE: HRB). During the 2007 tax year, more than 2 million H&R Block clients saved an average of $2,400 through occupational credits and deductions, and yet many taxpayers do not think to itemize or document job-related expenses throughout the year.
For example, educators are eligible to deduct $250 worth of out-of-pocket purchases, without itemizing, for classroom-related expenses. Salespeople who use a vehicle for business may qualify to deduct mileage between offices, customers or business errands, depending on the amount reimbursed by their employer. Production workers may be able to deduct the cost of supplies or equipment for work, such as goggles or steel-toed boots. And health care professionals attending continuing education courses may be able to deduct the cost of tuition, books, supplies and even transportation if certain criteria are met.
"Claiming these job-related deductions is like giving yourself a raise. People in many lines of work can deduct membership dues, mileage expenses, the cost of equipment and even what they pay for food," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "H&R Block has the expertise to find deductions for as many as 400 occupations, from daycare providers to truck drivers."
In general, deductible job-related expenses must be ordinary and necessary to qualify. An expense is ordinary if it is common and accepted in one's trade, business or profession. An expense is necessary if it is appropriate and helpful to business. An expense does not have to be required to be considered necessary.
The Deduction Finder tool at hrblock.com can help taxpayers understand which job-related deductions might be available to them. For more information on these and other expert tax tips, visit www.hrblock.com.
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4 billion in fiscal year 2007. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut(R) online and software solutions. The company also provides business services through RSM McGladrey and certain consumer financial services. For more information visit our Online Press Center at www.hrblock.com.
SOURCE: H&R Block Inc.