If you're a social media professional, chances are you're overlooking a few deductions that could reduce your tax bill. Depreciation (30%), out-of-pocket expenses (29%), and auto expenses (16%) are the most over-looked tax deductions, according to accounting software firm Xero.
If you work from home, you can probably deduct depreciation expenses related to office equipment, gadgets, hardware, and furniture. Take inventory of the tools of your trade. Save the receipt on your purchases, and use tax software to calculate depreciation.
2. Out-of-Pocket Expenses
Many Web publishers and marketers forget to deduct out-of-pocket expenses such as software, apps, and office supplies. Internet and Wi-Fi fees can also be over-looked because Web connection is such a common part of daily life.
However, these business expenses can reduce your tax bill.
3. Auto Expenses
If you attend a social media convention, you can deduct associated costs such as tickets, food, and gas. Keep receipts of parking, fuel, and other transactions so you can properly deduct these expenses.