To the majority of the population, taking care of the previous yearâ€™s taxes is someone elseâ€™s job. Most people donâ€™t thoroughly understand the ins and outs of tax laws, deductions, and credits. Itâ€™s all a big mess of mumbo jumbo to the laymen. There are plenty of software programs out there to assist you in filing your own taxes each year, but youâ€™ve got to know what you can and canâ€™t claim. If youâ€™re not sure about what gadgets and electronics count as a tax deduction, then weâ€™re here to help. Here is a quick summary of the top gadgets you can claim as deductions on your taxes.
There are certain electronic gadgets that fall under the first of the three categories, hardware deductions. Any time you purchase a computer or laptop, a tablet, or a cell phone (whether itâ€™s smart or not) for business purposes, you can claim it as a deduction on your tax return. You will want to make sure you keep proper documentation of all these purchases, but they are completely refundableâ€¦ especially if you work as an independent contractor. These gadgets can cost quite a bit of money, so donâ€™t miss out on this bit of knowledge when tax season comes around.
Peripheral (or things that connect to or are in relation to your computer) devices are also legally deductible from your taxes. Accessories like printers, scanners, and even those expensive cables can be counted as peripheral deductions on your tax return. As long as these purchases are considered ordinary and necessary to the workings of your job, youâ€™re in the clear. Again, just make sure you can provide the proper documentation in the case the IRS decides to request an audit of your finances.
Connectivity Cost Deductions
Connectivity costs relate to anything you use to facilitate your connection to the internet or mobile services. You can be reimbursed for data charges, the price of your modem, and even the price of your internet service itself. These together could add up to several hundred dollars or even more than that, depending on the size of your operation. You definitely cannot afford to overlook these simple deductions.
Other Miscellaneous Deductions
You can claim any low-end cameras you may purchase for safety or documentation reasons. Youâ€™ll want to keep it kind of cheap, though, so as not to push the limits of what the IRS deems claimable. You can also claim any software that is necessary for business (or college) purposes. Itâ€™s suggested that you only do that for the first year that you bought the program. Again, so you donâ€™t push your limits.