Every taxpayer aims to minimize tax liability and keep as many of those hard-earned dollars as possible. As many of you know, one way to do that is to maximize tax deductions. Can I deduct anything else? Am I missing anything? These are some of the most commonly asked questions. We want to let you in on the secret and share a list of the most overlooked tax breaks. Voila!
1. Medical and dental expenses – turn unpleasant into useful. Yes, all these and more may be deducted on your tax return:
- Health insurance & long-term care premiums
- Prescription drugs
- Transportation expenses to medical facilities or doctors’ offices (don’t forget that mileage log)
- Nursing home medical expenses
- Hearing aids, glasses, contact lenses, orthopedic shoes
- Some stop-smoking treatments
- Nurses’ fees
- Weight-loss programs prescribed by a doctor
2. Personal property taxes on cars, boats, etc.; and state sales tax paid on a purchased vehicle, boat, home building materials, etc. These deductions make the sales tax and DMV fees a bit more bearable, don’t they?
3. Charitable expenses
- Donated clothing or other goods – spring cleaning, anyone?
- Mileage incurred while performing charitable activities
4. Safe deposit box fees
5. Hobby expenses up to the amount of hobby income
6. Job hunting costs
7. Moving expenses incurred due to a change in your job or business location. Your new workplace must be at least 50 miles further from your old home than your old job location was from your old home.
8. Military reservists’ travel credits -reservists and members of the National Guard who travel more than 100 miles in a day and stay overnight for training can deduct related expenses
9. Child care credit and other care credits
- Child care costs
- Summer day-camp
- Care expenses for adult dependents
10. Energy-efficient home improvements… save even MORE!
And these are just some of the deductions. Let us help you combine one or two of these and you have just paid for your tax preparation fee…which, by the way, is also deductible.
In accordance with Internal Revenue Service Circular 230, you are hereby advised that if this post (or any attachment hereto) contains any advice concerning any federal tax issue or submission, such tax advice; 1) is not intended or written to be used, and it cannot be used by a taxpayer, for the purpose of avoiding penalties under the Internal Revenue Code; and b) is written to support the promotion or marketing of the transaction(s) or matters addressed herein, and any taxpayer should seek advice based on that taxpayer’s particular circumstances from an independent tax advisor.