Commonly Missed Tax Deductions

Lower Your Taxes – Even when you don’t Itemize Deductions.

  • Educator Expenses.
  • Certain business expenses of reservist, performing artists and fee-basis government officials.
  • Health savings account deduction.
  • Moving expenses.
  • Deductible part of Self-employment tax.
  • Health insurance premiums for some self-employed persons
  • Penalty on early withdrawal of savings
  • Alimony paid (does not include child support)
  • Retirement Contributions
  • Mandatory contributions to state disability funds

Deductible Medical and Health Care Expenses

Unreimbursed medical care expenses that exceed 10% of your adjusted gross income may be deductible. The deduction is 7.5% for those 65 or older.

  • Tolls, parking, and the standard mileage deduction of 23 cents per mile.
  • Overnight lodging medically necessary.
  • Medical aids such as crutches, canes, and orthopedic shoes
  • Hearing aids, eye glasses, and contact lenses
  • Hospital fees for services such as nursing, physical therapy, lab tests, and x-rays
  • Nursing home expenses that are primarily for medical care
  • Equipment for disabled or handicapped individuals
  • Part of life-care fee paid to retirement home designated for medical care
  • The cost of alcohol, drug abuse, and certain stop-smoking treatments.
  • Special school costs for mentally or physically handicapped individuals
  • Wages for nursing service.
  • Medicare health insurance.
  • Health and cancer insurance.
  • Medicare Insurance
  • Out of pocket for medicine and co-pays.

Taxes Paid

  • State estimated and prior year state taxes paid in the current tax year
  • Real Estate Tax
  • Personal property taxes on certain recreational vehicle, boats, cars, etc.
  • Taxes paid to a foreign government

Interest, Mortgage Insurance and Points

  • Points paid on mortgage or refinancing.
  • Mortgage insurance premiums.
  • Interest on mortgage

Charitable Contributions

  • Property donated to a recognized charity
  • Cash contributions to a recognized charity
  • Mileage incurred in relation to charitable activities at 14 cents per mile

Job Related Expenses

  • A handicapped individual’s work-related expenses
  • Professional journals, magazines, and newspapers that are job-related
  • Required uniforms and work clothes not suitable for street wear
  • Union dues
  • Employment agency fees or commissions
  • Home office expenses, if primary place of business
  • Job-seeking expenses within present field of employment including agencies, resume preparation, parking and tolls, long distance charges, and travel expenses
  • Dues paid to professional organizations
  • Business gifts up to $25 per customer or client
  • Employment-related moving expenses
  • Business expenses including travel, meals, lodging, and entertainment not reimbursed by your employer
  • Cleaning and laundering services while traveling for business
  • Tools bought for use at your job
  • Cellular phones required for business.
  • Education expenses paid to maintain or improve job skills.
  • Reservist and National Guard overnight travel expenses. There is a special allowance that enables deduction even if you don’t itemize.
  • Miscellaneous Deductions
  • Casualty and theft losses in excess of $100 and totaling more than 10% of adjusted gross income
  • Cost of safe deposit box used for investments or business Seeing eye dog or guard dog for business
  • New business start-up costs Worthless stock or securities Commission to brokers or agents for sale of property or property management
  • Fees for tax preparation or advice
  • Legal fees to collect taxable alimony
  • Expenses up to $50 per month for an exchange student living with you
  • Services of a housekeeper, maid, or cook needed to run your home for the benefit of a qualifying dependent while you work
  • Gambling losses to the extent of winnings
  • Hobby expenses if amounts are included in gross income.

Other Deductions

For more information or for any deductions or Credits not discussed here – Click Here

Tax Situations vary with each return. Deductions may not apply to you.