Individual Tax
Personal tax preparation, deductions, and filing strategies for Tri-Cities residents
5 questions answered in this category
What documents do I need to bring to my tax appointment?
Bring all W-2s, 1099s, mortgage interest statements (1098), property tax receipts, charitable donation records, last year's tax return, and photo ID. If you're self-employed, also bring income records and business expense receipts. Missing documents is the number one reason tax appointments take longer than they should.
What deductions do most people miss on their tax returns?
The most commonly missed deductions include state sales tax (especially in Tennessee where there's no income tax), out-of-pocket medical expenses exceeding 7.5% of income, educator expenses, student loan interest, and home office deductions for self-employed individuals. Many people also forget to deduct job search expenses and moving costs for work.
Should I itemize or take the standard deduction?
Take the standard deduction ($14,600 single, $29,200 married filing jointly for 2024) unless your itemized deductions exceed these amounts. Most people benefit from the standard deduction since the 2017 tax law changes. However, if you have significant mortgage interest, property taxes, medical expenses, or charitable giving, itemizing might save you more.
What are the tax implications of working remotely from Tennessee?
Tennessee has no state income tax, making it attractive for remote workers. However, if your employer is in a state with income tax, you may still owe taxes there depending on that state's rules. Some states have reciprocity agreements, while others like New York aggressively tax remote workers. Your specific situation depends on employer location and how often you travel to their office.
Can I deduct my home office if I work remotely as an employee?
Unfortunately, no. The 2017 Tax Cuts and Jobs Act eliminated the home office deduction for W-2 employees through 2025. Only self-employed individuals, independent contractors, and business owners can claim home office expenses. If you're a W-2 employee working from home, your employer may offer a stipend instead, but you cannot deduct home office costs on your personal return.