Get the Most Out of Your 2021 Tax Return

Tax season can be tough. There’s lots to consider, and even the most together Type A personalities can sometimes feel overwhelmed by the process of getting it all done. We all know it should be easier to deduce the exact size of your government rebate. But there is always something you didn't consider, always a number that doesn't add up quite right, always a receipt lingering in the forbidden recesses of your cubby drawer that didn't make it into the paperwork. That’s why we’ve partnered with H&R Block—whose online and in-person preparation services can help alleviate your tax-season stress and get you every tax credit and deduction you deserve—to put together a guide to navigating some of the muddier corners of the tax ecosystem. From the family dog to your noble volunteer grind, these are the expenses you won’t want to leave on the table.

No, this does not apply to adult summer camp. If you are a 33-year old lounging at Lake Wallenpaupack, that will need to come out of your own checking account. But if you are a parent who is sending your kids off for a week of fun, sunshine, and adventure while you catch up on several lifetimes of sleep? That totally could apply towards the Child and Dependent Care TAX Credit! This works even if the children are being sent off to a day camp, so maybe this year, little Johnny is going to be logging hours at a coding bootcamp.

The American dream is to write off our pets as business expenses, because as someone who currently lives in a household with three cats, I can confirm that those cans of Fancy Feast add up quickly. Sadly, your pet fish or hermit crab doesn’t count, but if you’re the owner of a traditional attack dog—rottweiler, doberman pinscher, etc.—consider certifying them as an official guard dog. If you work from home, Fido could be tax deductible. All vet bills, food, and training fall under the umbrella.

Graduating college is tough. Not only are you on the lowest rung of the job market fighting for scraps, there's also a good chance you might have an astronomical federal loan bill dangling above your head. If you're one of the many students who's getting some help from home to tamp down the cost, you should know that any interest paid by your parents can be deducted every year. That transaction counts as a gift from your folks, and can knock off as much as $2,500 in your bill.

Let's say, every Sunday, you jump in the car and drive the five miles out to the Long Island beach cleanup drive. Not only are you preserving the beautiful sandy shores of Montauk, the gas mileage to and from that noble work can be cut from the bill in April. 

One cohort who may be especially stressed by tax season is students, who could worry about the cost of filing. The good news here is that H&R Block offers free filing for simple returns, which can be a Godsend for current students. What’s more, it’s easy. So much so that H&R Block Free Online was named “one of the best on the market” by NerdWallet in their Best Of Awards for 2021. So don’t sweat it, and let filing this year be an Easy A.

At last, a chance to quit smoking and save some money. The IRS allows medical deductions for smoking-cessation programs, as well as nicotine-addiction prescriptions, which means that the long, hard process of kicking the habit could be bundled with some monetary advantages. That said, this provision does not include over-the-counter medications, so consider making an appointment with your doctor. 

This is perhaps the only good thing about getting summoned to serve on a jury. If that telltale letter arrives in your inbox from the state, rest easy knowing that, if you’re put on a long trial and receive compensation for your service, you may be able to turn that money over to your employer if you remained on salary while ADMINISTERING JUSTICE. At the end of the year, the money earned in court can be deducted from your tax forms. A win-win!

Everyone who makes the lion's share of their money through 1099s knows about the art of the travel expense. But oftentimes, freelancers don't comprehend the full extent of what can be written off. Plane tickets are one thing, but what about checked bag bills, or tips, or the rideshare to your brother's house where you'll be crashing in order to save money on a reporting trip? Ah, to be 22 again. Remember, traveling is expensive, and those tiny costs can add up quickly when you file. Be sure to read more on H&R Block’s Self-Employed page. 

This article was created in partnership with H&R Block.