April 15th is quickly approaching, and tax season always seems to bring out a few of the same questions. Fox Business ran an article last week featuring answers to perennial tax questions.
- Can I write off my business clothing? Or my haircuts? The people who ask these questions are following the line of thinking that they wouldn’t otherwise buy business suits. Or cut their hair (yikes!). Although grooming and clothing aren’t deductible, there are exceptions. If an item of clothing isn’t considered normal street clothing (such as a theater costume) or if it’s considered safety equipment (such as steel-toed boots), it’s tax-deductible. Also, if you have company shirts or uniforms with your logo on them, they are tax-deductible.
- Can I deduct the federal income tax I pay each year? Federal income tax is never deductible, but you can write off amounts you pay in state income tax, including state income tax withheld from wages, state disability premiums withheld from your pay, estimated tax payments made during the tax year, and state income tax payments for the prior year income tax return or any other prior years.
- Is Private Mortgage Insurance (PMI) deductible? For 2013, yes, PMI is deductible. However, this is one of the deductions that expired at the end of 2013 and hasn’t been renewed by Congress, so 2013 may be the last year for it.
If you have other questions, please feel free to give me a call at (864) 836-3136 and we’ll set up an appointment.