Home office space
If you work for yourself or have a side business, you might qualify for a home office deduction. This means you can deduct a certain percent of your home expenses using Schedule C. “Self-employed? Entrepreneurs can claim a maximum of 300 sq.ft. for their in-home office, earning about a $1,500 deduction,” said Nickson. To receive the deduction, that space must be used exclusively for business purposes.
FSA contributions
A Flexible Spending Account (FSA) is a tax-free savings account, similar to an HSA, which can cover your necessary expenses, from medical to dental and dependent care costs.
“Employees participating in a non-HSA Compatible Health Plan may choose to enroll in a health care Flexible Spending Account (FSA). They can contribute up to $2,650 on a pretax basis in 2019 for eligible health care expenses, regardless of whether they are single or have dependents. The funds must be used within the plan year or else they will be lost. This is known as ‘use it or lose it.’ Many companies offer employees the opportunity to place money in a Childcare Flex account. This type of FSA allows one to set aside up to $5,000 ($2,500 for married individuals filing separate returns) before taxes to pay for dependent care expenses” said Gary Scheer.
