Everybody wants to save money when doing their taxes. Here we’ll provide you with tax deduction help in the form of 10 often overlooked tax deductions.
The ultimate goal is to lower your tax bill. But before you start using any tips or tax advice you should always make a list of tax deductions you’re considering. Then inquire if you can personally use it before going ahead with it. After that you can also make a tax deduction checklist of what you qualified for.
This could be useful for the following year as well.
Here is a list of common tax deductions that are often overlooked:
Transportation: You can itemize transportation when you go to do charitable work with church, synagogue or a civic organization. You can also deduct the transportation cost. Keep a mileage booklet with dates and how many miles to and from your charitable work. Even uniforms can be deductible.
Doctor Expenses: For trips to the doctor, if your total medical expenses exceed 7.5% of your adjusted gross income, you can deduct. Also parking cost. Always check to see the current years mileage allowance.
Self-Employment Expenses: If self employed you can write off expenses related to your job, as long as for work. If you have a home office, a room or a corner just for your work, you can deduct a portion of your rent or mortgage payment. You must be self-employed so check with your tax consultant.
Car Purchases: There are also tax credits on car purchases, like the sales and excise tax paid. Check first.
Disaster Losses: With some disaster losses, you can claim some property losses for fair market value. Another standard deduction, real estate taxes for homeowners.
Home Refinancing: The points you pay to refinance your home may be deductible.
Health Insurance: Some health insurance premiums may be deductible.
Unemployment Travel: If you are unemployed and looking for a job you may be able to deduct the cost of a trip planned for your interview. You can deduct the hotel fee and airline tickets.
Charity: You can deduct charitable items like clothes and household items. They must be in good condition. They would be donated to places like Goodwill or Salvation Army. ItsDeductable from Turbo Tax could be a useful tool for tracking your charity donations.
Professional Library: Students that have graduated can now amortize their books as part of their professional library.
Educator Expense: Educators can get a above-the-line deduction, as much as $250.00 for materials you bought on books, supplies and computer equipment. You need to be a K-12 teacher, aide, instructor or principal.
How Tax Write-offs Work
Final Word: Tax Deduction Help
Notes: As with most saving tips always check with your tax consultant to see if they are still available. Many deductions change year to year. Also different rules in each state.
Keeping a tax deduction checklist will become a useful tool during this process. When doing your taxes you should always take extra caution, you should always double check and make sure before you do anything. Seeking advice can be a great method to sort out your list of tax deductions.
If you feel that you qualify for any of these you should make sure before you proceed. Its better to seek tax deduction help to find out information as opposed to making a mistake. So its better to be safe than sorry.
Most agencies are up-to-date and know many of the common tax deduction tips, they can answer any questions you may have on your tax deduction checklist. The IRS has a great database of information that covers some of these areas.