50 OF THE MOST EASILY OVERLOOKED DEDUCTIONS
The following list will serve as a reminder of some deductions you can easily overlook when you prepare your return. It is not intended to be all-inclusive, nor applicable to everyone. The circumstances of your situation will determine whether you qualify.
- Accounting fees for tax preparation services and IRS audits.
- Alcoholism and drug abuse treatment.
- Amortization of premium on taxable bonds.
- Appraisal fees for charitable donations or casualty losses.
- Appreciation on property donated to a charity.
- Casualty or theft losses.
- Cellular telephones.
- Cleaning and laundering services when traveling.
- Commissions and closing costs on sale of property.
- Contact lenses, eye glasses, and hearing devices.
- Contraceptives, if bought with a prescription.
- Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies.
- Depreciation of home computers.
- Dues to labor unions.
- Education expenses to the extent required by law or your employer or needed to maintain or improve your skills.
- Employee contributions to a state disability fund.
- Employee's moving expenses.
- Federal estate on income with respect to a descendent.
- Fees for a safe-deposit box to hold investments.
- Fees paid for childbirth preparation classes if instruction relates to obstetrical care.
- Foreign taxes paid.
- Foster child care expenditures.
- Gambling losses to the extent of gambling gains.
- Hospital services fees (laboratory work, therapy, nursing services, and surgery).
- Impairment-related work expenses for a disabled individual.
- Improvements to your home.
- Investment advisory fees.
- IRA trustee's administrative fees billed separately.
- Lead paint removal.
- Legal abortion expenses.
- Legal fees incurred in connection with obtaining or collecting alimony.
- Margin account interest expense.
- Medical transportation, including standard mileage deduction and lodging expenses incurred for medical reasons while away from home.
- Mortgage prepayment penalties and late fees.
- Out-of-pocket expenses relating to charitable activities, including the standard mileage deduction.
- Part of health insurance premiums if self-employed.
- Penalty on early withdrawal of savings.
- Personal liability insurance for wrongful acts as an employee.
- Points on a home mortgage and certain refinancings.
- Protective clothing required at work.
- Real estate taxes associated with the purchase or sale of property.
- 50% of self-employment tax.
- Seller-paid points on the purchase of a home.
- Special equipment for the disabled.
- Special schools and separately stated feed for medical care included in tuition.
- State personal property taxes on cars and boats.
- Subscriptions to professional journals.
- Theft of embezzlement losses.
- Trade or business tools with life of year or less.
- Worthless stock or securities.
Excerpted from THE ERNST & YOUNG TAX GUIDE 2000, Peter W. Bernstein, editor. Reprinted by permission of the publisher John Wiley & Sons, Inc.. To order a copy of this book, visit the Wiley website at http://www.wiley.com. This book is available through all online bookstores, including amazon.com, barnesandnoble.com and borders.com, or any independent bookseller found on bookweb.org.
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