Overlooked Deductions| Stialus

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Commonly Missed Deductions

Paying taxes is tough and can be downright painful. STIALUS Tax Service wants to remind you of some of the most commonly missed deductions below

Tax Preparation Fees: From a company that offers tax preparation services the most obvious deductible to mention is the ability to deduct the cost of tax preparation when you file Form 1040 with Schedule A Itemized Deductions attached these expenses may be deductible..

Financial Planning Fees: If you had to pay anyone to help you manage your income, you can deduct these expenses when you file Schedule A. The legal cost incurred to collect taxable alimony is deductible. IRA trustee fees, if separately billed and paid from funds that are not inside the IRA, are deductible. If you paid a lawyer to prepare a trust or if you subscribe to an investment journal these expenses may also be deductible.

Casualty or Theft Losses: If your property was damaged or destroyed due to natural disaster or was taken from you with the intent to deprive you of it, you may deduct casualty and theft losses. However, you must reduce the loss by the amount of any insurance reimbursement or other reimbursement you expect to receive.

Medical Purchases and Expenses: Contact lenses, eyeglasses and hearing devices, as well as breast pumps, child birth classes, and certain prescription contraceptives can be deducted. If a dependent had inpatient treatment at a clinic for alcohol or drug abuse, the meals and lodging at the clinic during treatment are considered deductions. If you are self-employed, you can deduct any premiums you pay out for health insurance. It’s important to note that your total medical expenses must be more than 10% of your adjusted gross income on Schedule A to qualify.

Charitable Mileage: Most taxpayers know they can deduct donations made to charities, but some forget to record their mileage when volunteering. Mileage driven for volunteer work and for charitable organizations and functions is tax deductible. Miles, parking fees, and any tolls qualify for the deduction. If you did not drive, you can still deduct your fees if you used public transportation.

Certificates of Deposit (CDs) Withdrawal Penalties: If you withdrew money out of a CD early and were charged a penalty, you can deduct that on your taxes.

Job Related Expenses: For job seekers who can itemize, the IRS allows certain expenses to be deductible, such as placement agency fees, resume printing and mailing costs, legal fees related to doing and keeping your job.

Dividend Slips (1099-DIV)

Education Credits: Did you or your dependents take classes for your job? The Lifetime Learning Credit as well as the American Opportunity credit allows you to deduct education expenses.

Personal Cell Phone Use: If you use your cell phone for business you can deduct the expenses.

Mortgage Points: Check the 1098 statement your lender should have given to you. Report this amount, along with the interest you paid on your mortgage.