Don’t overlook tax-saving deductions
If you itemize deductions on your tax return, every additional deduction you find will save you money. In the past, higher-income taxpayers had their itemized deductions limited. Effective for 2010, 2011, and 2012 tax returns, there is no income-based reduction in total itemized deductions. That may give higher-income taxpayers another reason to track their deductions carefully.
Here’s a sampling of often-missed deductions.
* Disaster losses not reimbursed by insurance.
* Job-hunting travel and telephone expenses.
* Employment agency and job counseling fees.
* Costs for resume preparation.
* Union or professional association dues.
* Specialized work clothing or small tools used at work.
* Points paid by you on a new home loan.
* Home mortgage points paid by a seller on your behalf.
* Points paid on refinancing your home mortgage (deductible pro rata over the life of the loan).
* Remaining undeducted points on a prior refinancing when you refinance again.
* Your actual expenses or 14¢ a mile for driving in doing charitable work.
* Gambling losses, but only to the extent of your winnings.
* Fees paid for the preparation of your tax return.
For assistance in identifying all the deductions to which you are entitled, contact our office. We are here to help you pay the lowest tax allowed under the law.David Bradsher, CPA