Article Advise

submitted: Jul 29th 2008 | by: ZachAllred | Total views: 1 | Word Count: 542 | |

Tax deductible items are overlooked on most occasions even if you have someone like me who has been preparing income tax returns for 18 years prepare your taxes. If you are doing them yourself then you definitely need this information.

1. Miles driven for medical related incidences are deductible as an itemized deduction. The rate is $.20 for 2007 and $.19 for 2008. 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 deductions are made and often forgotten about. Sometime we just cannot remember the box of cookies we bought from our neighbor's daughter who is with girls scouts as well as many other donations throughout the year. Add them upyou will not be sorry.

4. Expenses incurred during a move that is job related are a tax deductible item. Ask your tax preparer about this one as there are certain tests to be satisfied. If you qualify include expenses for transportation and storage of household goods. Also travel including lodging from your old home to your new home is deductible.

5. Deducting alimony can provide an annual tax reduction of $3,360 per year assuming $1,000 paid per month and you are in a 28% tax bracket. Do not pass this one up as the alimony is also taxable to your ex.

6. Interest paid on student loans is deductible. Many times after graduation you take a new job and your address changes. The year end statement showing the amount of interest paid for the calendar year gets misplaced. Therefore, if you paid student loan interest or have a child that did do not pass this tax deductible item up.

7. State income taxes that are withheld on your W-2 are deductible. In addition, do not forget the amount of taxes paid to your state for a prior year filing.

8. Personal loans you have made to family and friends who have not repaid you are deductible. The IRS does not require you to take these people to court to be able to take this deduction. If you have capital gains and are looking for a way to off set them this deduction can be golden.

9. Did you dabble in any kind of business on the side? Be sure to add up all the expenses and at least let your tax preparer know about your effort to enter the self employment arena so he can help you include all the deductions you entitled to.

10. Often clients will rent a home to a family member and will not want to report the rental income. This is a big mistake because it is illegal but you also miss out on legitimate tax deductions that when properly totaled create a loss on your 1040 that goes against income from other sources.

About the Author

You can go to Zach Allred's web site for more articles relating to tax deductible items and tax structuring as well as multiple home based business ideas. Don't reprint this exact article. Instead, reprint a free unique content version of this same article.

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