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.