Get a Tax Break for Shoveling Snow
You may be able to write off what you pay the neighborhood kid to shovel your walk -- plus the cost of the shovel.
I run a small business out of my home, where I occasionally meet with clients and often receive deliveries. Every time it snows, I pay $20 to the kid next door to shovel -- and this weekend's blizzard will probably cost extra! Can I deduct what I pay him, plus the cost of the de-icing salt and shovels?
If you qualify for the home-office deduction, you can include these costs as maintenance expenses, says Clare Levison, a CPA in Roanoke, Va. You must use the regular method to calculate the deduction, based on your actual expenses, not the “simplified method,” in which you multiply the square feet of your home office by $5.
The amount you can deduct is prorated based on the percentage of your home devoted to your business activities. For example, if the space you use for your home office is one-fifth of the square footage of your home, then one-fifth of these expenses will be deductible. The same is true for utilities, rent or mortgage interest, and homeowners insurance premiums. “You should keep good records of your expenses,” says Levison. “It’s always best to get a receipt whenever possible.”
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Report these maintenance expenses on line 19 of IRS Form 8829, Expenses for Business Use of Your Home. For more information, see Instructions for Form 8829. To find out whether you qualify for the home-office deduction, see IRS Publication 587, Business Use of Your Home. Also see Most-Overlooked Tax Breaks for the Self-Employed.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Tax Breaks That Get Better With Age
Tax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
By Kelley R. Taylor Published
-
How Inflation, Deflation and Other 'Flations' Impact Your Stock Portfolio
There are five different types "flations" that not only impact the economy, but also your investment returns. Here's how to adjust your portfolio for each one.
By Kim Clark Published
-
Tax Breaks That Get Better With Age
Tax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
By Kelley R. Taylor Published
-
Biden Proposes New Homebuyer Tax Credits
Tax Credits President Biden called for new middle-class tax breaks in his State of the Union address.
By Kelley R. Taylor Last updated
-
Will Florida Property Tax Be Eliminated?
Property Taxes A new proposal is raising questions about revenue generation in the Sunshine State.
By Kelley R. Taylor Published
-
States That Won't Tax Your EV
State Tax Most states impose additional fees on electric vehicles, but these states don’t penalize EV owners, and some also offer other tax incentives.
By Kelley R. Taylor Last updated
-
Tax Season is Here: Big IRS Tax Changes to Know Before You File
Tax Filing Tax deductions, tax credit amounts, and some tax laws have changed for the 2024 tax filing season.
By Kelley R. Taylor Last updated
-
Your Arizona Family Rebate is Taxable: What to Know
State Tax Thousands of Arizona families will need to report income from special child tax relief payments.
By Kelley R. Taylor Last updated
-
Families and Businesses Would Get Big Tax Breaks in Bipartisan Tax Deal
Tax Changes A new bipartisan tax deal could change the child tax credit, R&D expensing, and the employee retention tax credit.
By Kelley R. Taylor Last updated
-
Non-Refundable vs Refundable Tax Credits: What’s the Difference?
Tax Credits Refundable tax credits and non-refundable tax credits can be confusing. Here’s how they work and how each can help you when you file your tax return.
By Katelyn Washington Published