Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Likoper via Getty Images
- Not everyone who has a pet can deduct their pet care costs, but it's worth learning the rules.
- You can offset some of your gambling losses as long as you also report your winnings as income.
- If you work, you can deduct certain childcare costs, such as the cost of hiring a babysitter.
As you start to look over all of your credit card and bank statements to prepare for your 2022 tax filing, you might start to wonder about all of the different deductions you can make that can potentially lower your overall tax bill.
While some are standard, like IRA contributions or student loan interest, others might not be so obvious, and if you're filing your own tax return, you might miss out on the opportunity to take these deductions.
Here are five unusual tax deductions that accountants say many people don't even know they might be eligible to take.
See Insider's picks for the best tax software »
1. Expenses related to your pet
You might never have thought that having a pet could be a tax deduction, but certified public accountant Briana Redzeposki says there are a few instances where your dog, cat, or even lizard could help lower your tax bill.
For example, Redzeposki says if your pet provides rodent control for your business, they can be considered a business expense. However, the IRS does require that the pet live on the business premises full-time for their expenses to be claimed.
Also, if your pet is earning income, whether through social media brand deals or through being featured in ads or movies, Redzeposki says you can claim pet-related deductions.
Certified public accountant Moira Corcoran also says that if your dog is a service animal, their expenses can be deducted. However, she does share that in order to take these deductions, you have to itemize — you can deduct expenses that exceed 7.5% of your adjusted gross income.
2. Jury pay given to the employer
If you were chosen for jury duty in 2022, Corcoran says that there might be a deduction you can take on your tax return.
Corcoran shares that some employers will request your pay from jury duty, since they are paying you while you are doing your civic duty. If that's the case, she says you can deduct the amount given to your employer so you are not taxed on the income.
3. Gambling losses
Perhaps you tried your hand at a few too many bets in 2022 and lost quite a bit of money. Corcoran says you shouldn't shy away from using gambling losses as a tax deduction.
"However, you can only do this to the extent of your winnings," she says. If you do go this route, it's important to know that you must report all of the money you won as a taxable income on your return.
4. Cost of childcare
Not only do you get tax credits and deductions for having a child, but certified public accountant Elise Faucette says you can also deduct the cost of childcare as well.
"Working taxpayers with dependent children can claim a credit for the cost of childcare while they work or are actively looking for a job," says Faucette. Some of these eligible expenses could include the cost of a babysitter, housekeeper, or cleaner.
5. Out-of-pocket charitable deductions
If you helped out with any charities last year, Corcoran says you might be eligible to deduct costs associated with supporting these organizations.
"You can write off out-of-pocket expenses related to your work with a charity," she says. For example, deductions could include vehicle gas or even supplies that you bought for work you did with a charity last year.