Wednesday, February 01, 2006

Tax Deductions Not to be Forgotten About - Look here before you file

Category: Tax Law and Planning

Courtesy of James Jimenez, CPA of Fass and Associates in Parsippany, New Jersey:

Don’t Miss These Often Overlooked Deductions

If you itemize deductions on your tax return, every additional deduction you find will save you money. Here’s a sampling of often-missed deductions. As you review the list, be aware that certain miscellaneous deductions are deductible only to the extent they exceed 2% of your adjusted gross income (AGI), and medical expenses are deductible only to the extent they exceed 7.5% of your AGI. Also, itemized deductions are limited for higher-income taxpayers.

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.
  • 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 (larger deduction if driving is in conjunction with 2005 hurricane charity work).
  • Gambling losses, but only to the extent of your winnings.
  • Fees paid for the preparation of your tax return. "

And an extra from me, certian legal fees.

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