I was reading up on deductions, and here are some of the top tax deductions that are overlooked. Now, depending on your filing situation, not all of these deductions will apply to you. And I cannot stress this enough, make sure you have records and you keep them. Do this every year. The more accurate your records are, the better benefit it will be to you when it is time to file your taxes. Also, I strongly suggest to not listen to advice from people who are not tax preparers or who are not familiar with the tax code. I cannot tell you how many times I have had clients come into the office expecting tax deductions that are not allowed, and it turns out they were given the wrong information from a family member, friend or co-worker.
1. Unreimbursed casualty and theft losses that are more that $100 and total more than 10% of your AGI(Adjusted Gross Income).
2. Mileage driven in relation to charitable activities.
3. Wages for nursing services.
4. Cost of a safe deposit box used for investment purposes.
5. State income taxes that are owed from a prior year and paid in the tax year.
6. Taxes paid to a foreign government.
7. Required work uniforms not suitable for wearing on the street, such as a UPS driver's uniform.
8. Gifts to business clients up to $25 for each person.
9. Special school costs for mentally or physically handicapped people.
10. Guard dog for your business, or a guide dog.
11. Union Dues.
12. Employment agency fees.
13. Professional journals and magazines.
14. Mandatory contributions to state disability funds.
15. Gambling losses, up to the amount of your winnings.
16. Tax preparation fees, advice, and software.
17. Commissions to brokers and agents for the sale of property.
18. Worthless stock and securities.
19. Cell phones required for your business.
20. Medical transportation including parking, tolls and mileage for picking up medicine, doctors and dentists.
21. Adjustment on Form 1040 for student loan interest.
22. Adjustment on Form 1040 for one-half of the self-employment tax you paid.
23. Health insurance premiums for some self-employed taxpayers. This is also and adjustment on Form 1040.
24. Adjustment on Form 1040 for penalty on early withdrawal on savings.
25. Alimony you paid, also an adjustment on Form 1040.
26. Nursing home expenses which are primarily for medical care.
27. Equipment for disabled or handicapped individuals.
28. Certain stop smoking treatments and the cost of alcohol and drug abuse treatments.
29. Part of life-care fee paid to a retirement home designated for medical care.
30. Job seeking expenses within your present field of employment.
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Timothy Watson is entering his 4th season as a tax preparer. The best tax deduction guide http://tinyurl.com/ultimatetaxreductionguide
This intel first appeared on: http://taxdeductionguide.blogspot.com/
