If you haven’t yet filed your taxes and work as an engineer, check out these seven common tax deductions that could minimize your tax burden this year!
Tax Deductions for Engineers
Engineers can receive tax deductions for different aspects of their jobs. The best tax deductions for engineers follow.
1. Advertising
You can claim a tax deduction for advertising expenses. Since advertising covers a broad field, here’s what is deductible:
2. Car Use and Truck Use
If you own an engineering business or you’re a self-employed engineer, you may qualify for car or truck-related deductions. Before claiming a tax deduction for car or truck usage, you’ll need to consider how you use your vehicle.
You’ll only claim a deduction only for the business portion of when you drive your vehicle. Personal use of your vehicle won’t qualify for this type of tax deduction.
You can determine expenses in two ways: you can use actual costs or use the standard mileage rate. Actual expenses cover:
The standard mileage rate is available for you as an alternate option.
3. Insurance
Engineers can claim deductions for insurance costs. Engineering insurance comprises several insurance types, including:
4. Meals
While you might not consider business meals to be deductible as an engineer, they are deductible under the circumstances. Business meal costs are 50% deductible if:
You can also deduct meals as an engineer if you provide meals to your employees. There are two scenarios in which the rate is 50% deductible:
5. Office Supplies
If you use office supplies in the last tax year, you can also claim the tax deductions expenses. You can claim 100% of the costs paid for office supplies.
Before claiming this deduction, there are some things that you should know. As of the 2016 tax year, you can deduct business assets, including office assets, up to a specific cost:
6. Travel
As an engineer, you may know that you are eligible for tax deductions for travel. However, you qualify for deductions for different forms of work-related travel.
If you travel for business-related work duties, you can deduct costs for:
You can also deduct business-related travel costs for:
7. Work-Related Education Expenses
Finally, you may qualify for a tax deduction based on work-related education expenses. As an engineer, you can deduct work-related education expenses if you’re a:
There are two requirements to receive tax deductions for work-related education expenses. First, your expenses must be for education that improves or maintains work skills. Second, your expenses must be for education that a law requires you to keep your current job, salary, or status.
Some work-related education expenses you can deduct are:
Let Us Help You With Your Tax Needs
As an engineer, it’s critical to know which tax deductions you can take to significantly reduce your taxable income. It's also very easy for business owners to forget or overlook some tax deductions. If you’re unsure of which deductions you qualify for or have questions about your taxes, seek out the advice of a professional accountant.
Not only can they answer any questions you may have but they can also handle your taxes for you— making your tax seasons a lot less stressful. Work with 1-800Accountant for help with your help with taxes and tax deductions.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.