Commonly Overlooked Tax Deductions

 

Student Loan Interest

If you paid interest on a qualified student loan during the year, you can deduct up to $2,500 of those payment even if you don’t itemize your deductions.

Tuition & Fees

You can deduct up to $4,000 of qualifying higher education expenses, even if you don’t itemize.  If you take this deduction you can’t take the HOPE or lifetime learning credit.

Medical Expenses

If your medical expenses exceed 7.5% of your income, you may deduct the excess on your itemized return.  If you’re self employed you can deduct 100% of your insurance premiums whether you itemize or not.

Moving Expenses

You can deduct your moving related expenses if:

  1. Your move is job related
  2. Your new job would have increased your commute by more than 50 miles if you hadn’t moved
  3. You are employed full-time for at least 39 weeks during the 12 months after you move.
  4. Your employer didn’t reimburse you for your moving expenses.

State & Local Taxes

If you itemize, you have the option of claiming your state and local sales tax or state and local income tax for the year (but not both).  You’ll need receipts for all you purchases if you chose the sales tax deduction.

Charitable Donations

If you itemize, you can deduct charitable cash and non-cash contributions to qualified Organizations.  Receipts are required for all donations.  You can also deduct mileage expenses you incur while volunteering your services.

Out-of-pocket Job Expenses

If you itemize, these job expenses (not reimbursed by your employer) are deductible.

  • Travel Expenses
  • Uniforms
  • Union Dues
  • Continuing education expenses

Self-Employment Deductions

  • You can deduct half of your self employment-tax
  • The Section 179 Deduction allow you to write off up to $125,000 for new or used business equipment purchased in 2007.  This amount increases each year.
  • In some cases your home office, home office equipment/furniture may also be deducted however, some special rules apply.
Courtesy of H&R Block

For More Information contact us:

The participating lenders on this site are motivated to serve you well. Your feedback establishes their eligibility to participate on this site.