Tax Deductible Items Not To Miss

For 20 years I have been preparing income tax returns for individuals. Unfortunately, for those who prepare their own returns, I am certain these 10 tax deductible items are almost always overlooked. 1. Miles driven for medical related incidences are deductible as an itemized deduction.

The rate is $. 24 for 2009 and $. 1
6. 5 for 2010. Miles are totaled for doctor visits and hospital visits. Start adding them up and you will be amazed. Think about it on a weekly or monthly basis and then multiply by 52 or 12 respectively.
2. Mortgage interest paid on a 2nd mortgage is often overlooked.

If you have a motor home with a functioning kitchen and bathroom you are entitled to this often over looked tax deductible item.
3. Charitable donations are often overlooked since we do this out of the kindness of our hearts. But when it comes tax time sit down and figure these up.

Include donations to Deseret Industries and vehicles donated to different foundations.
4.

If you had to move during the year for work then do not forget moving expenses.

You must meet certain tests so be sure to discuss this with your tax adviser. Tax deductible items include actual out of pocket expenses for oil and gas.

Also include expenses for storage of household goods and lodging expenses.
5. Alimony is deductible by the payer and reportable by the recipient. Do not pass this up as this can take a little pain away from the amount being paid each month to the ex.

If you are in a 28% tax bracket and the alimony amount is $1000. 00 per month then the annual tax reduction is $3,360.
6.

Interest for loans to pay education expense are a deduction. With graduation comes so many changes and mail gets lost and misplaced or just does not get forwarded. Take advantage of this deduction by being sure you know how much interest was actually paid for the year. 7. Most of us know that we can deduct our real estate taxes on our home but did you also know the state income taxes withheld from your W-2 are also deductible.

Also the state income taxes paid during the year for a prior year should be included as a deduction. 8.

You can create a capital loss on your individual tax return by deducting worthless debts.

These are loans you have made to family and friends that have not been repaid. Capital losses go nicely against capital gains. 9. Losses from business endeavors will be covered in other articles but for the present let me just say do not be timid to take losses on line 12 of your 1040 which arise from self employment.

If your venture was intended to turn a profit then you should be taking the deduction. 10. When a family member moves into another home you own often you will forget to report it.

The incentive to reporting is that this is a tax deductible item.

You can usually create a loss to be reported on your 1040 when these deductions are properly accounted for.
Zach Allred is a tax accountant with twenty years experience. Visit Small Business Taxes to sign up for a complimentary monthly Newsletter.

Also visit Federal Tax Deductions to read other free articles.

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