It happened. We are actually in the final month of the year. We have already talked a bit here about getting to the end of the year and your last chances to make moves that can affect your tax picture. And now, it is December, the chances are decreasing, and it will be 2022 almost before we know it.
So consider that another little warning about timing.
But there’s no need to be all doom and gloom here, for there can be good news when it comes to taxes. (I know, I know, that sounds utterly impossible.)
First, last month the IRS released some guidance over a 100% deduction for food and beverage from restaurants. That’s right, 100%! Now, can you even get more good news than that?
You can! It applies to next year, too!
Hyperbolic exclamation points aside, this is something that will be a pretty good benefit for many. The actual IRS news about this is full of boring notices and procedures, but what they represent is not complicated. The meals deduction is usually 50%, so when you double what you are eligible for, that’s a good thing. Granted, this isn’t something so huge that I’m recommending planning some more end-of-year work dinners, but it is still a benefit worth highlighting. So just remember to keep those receipts after you have finished eating.
And yes, it is now time for the return of excessive punctuation! For did you know that teachers were also eligible for some deductions?!?!
This essentially is a deduction for classroom expenses that teachers paid out of their own pockets. Again, there is some hyperbole involved here, though, for this deduction caps out at $250 for an individual. The IRS sent out another notice about it last month, though, so I figured it was worth highlighting it here, too.
These may be only small bits, but they call attention to a bigger point about timing. The more prepared you are for your tax return, the more deductions you will have time to find out about, document, and claim. Each individual deduction may not be the difference between owing money and getting a hefty refund, but enough of them could shift things in a significantly better direction. And sure, the things we most look forward to this month aren’t tax preparation, but don’t forget about how good it can be to be on top of things before it is too late and time gets away from you.
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