BY Catherine Clifford | March 20, 2013 | Tax time is coming. Your chances of cutting your tax bill are greater if you have been working with an accountant all year long, says Jamie Sutherland, the U.S. president of operations at San Francisco-based Xero, an online accounting software company. But here are a few last-minute deduction tips that you might not have thought of.
1. The new, simpler home-office deduction may not actually be a good choice for you.
In January, the Internal Revenue Service announced a more streamlined way to calculate the often-complex home-office deduction. Instead of filling out the 43-line tax form (form number 8829 for the self-employed) to determine your home-office tax deduction, business owners can claim a deduction equal to $5 per square foot of home office space on up to 300 square feet for a maximum deduction of $1,500 per year.