6 things you didn’t know could affect your taxes

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Before you press “send” on your tax return, make sure you have all the information you need to get your return completed accurately. Here are six unexpected ways your taxes could be affected this refund season:

1. Your fantasy football league may come with a tax deduction.

You’re in luck, fantasy football fanatics: players who win prizes playing in their league can deduct fantasy football expenses. Fantasy sports players are usually classified as hobbyists, which means they must report all of their income and can deduct their expenses. For example, one of the largest expenses is often the entrance fee. If a player’s prize is $5,000 and the entrance fee was $1,000, in some cases $4,000 of net income will be reported on Form 1099-Misc. Entrance fees for losing games as well as other expenses connected to playing fantasy sports can be claimed as a miscellaneous itemized deduction (subject to a 2 percent of adjusted gross income threshold). Expenses are deductible only up to the amount of hobby income.

2. Anchor up! Your cruise trip might too.

Combine a warm and sunny Caribbean cruise with productive business meetings and a tax deduction! Annually, you can deduct up to $2,000 of expenses for attending conventions, seminars or business meetings on a cruise ship. But be careful — the cruise ship must be registered to the U.S. and all ports of call must be in the U.S. or U.S. possessions. You must be able to document the business purpose of the trip and only your own (not your family’s) expenses are deductible.

3. Marriage comes with lots of love — and maybe a tax penalty.

Lovebirds, don’t let this deter you from your walk down the aisle, but in some cases, a working couple will pay more in taxes on their combined incomes than two single people with the same incomes would pay. This may be especially true for higher income couples who make similar salaries. Also, there are many tax benefits that individuals receive that are not doubled for married filers. On the other hand, couples with dissimilar incomes may pay less as a married couple than the combined taxes that two single taxpayers would pay.

4. Home improvements can trim your taxes on a home sale.

Go ahead, tackle that kitchen remodel! Tax rules let you add capital improvement expenses to the cost basis of your home. A higher tax basis means that it lowers the total profit — the capital gains — you might have to pay on the sale of your home. A single filer is exempt from paying taxes on up to $250,000 of profit, and joint filers are exempt from paying taxes on up to $500,000 of profit in a home sale (if they meet certain ownership and use requirements). So if a single filer buys a home for $200,000 and adds $25,000 of qualifying capital improvements, their new cost basis is $225,000. Selling the home for $475,000 leads to a gain of $250,000, which would make the filer exempt from paying taxes if they meet ownership and use requirements.

5. Your side gig as an Uber driver can be taxing.

If you drive for Uber, Lyft or another ride share service — congratulations, you’re a small business owner! You can choose your schedule, dictate your hours and be your own boss, but remember: income from this job is self-employment income and will be subject to a 15.3 percent self-employment tax.

6. You can get your taxes done at half the price.

Taxes can be complex, but they don’t have to be expensive. If you filed your taxes with someone other than H&R Block last year, H&R Block will do your taxes for half of what you paid last year. That’s 50 percent less — and half is always a better price. Learn more at hrblock.com/payhalf.