The Most Overlooked Deductions

If you are like millions of Americans who throws all of their receipts, credit card and bank statements into a box and run to their tax preparers in the hope that they will be able to go through ALL your stuff and absorb all the information through osmosis, then you are likely to overlook hundreds of dollars in tax deductions when the time comes to prepare your tax returns. You cannot blame them, many times they are charging as low as $50 to prepare your tax returns. It is impossible for someone that was not with you all year to go through your box and in a matter of minutes be able to complete your tax return with all of your deductions. I do not care how many checklists they may have to collect your data.

Here is some information you may want to know:

· The most recent numbers show that about 46 million Americans itemized deductions in their 1040s. This group claims approximately 1 Trillion dollars worth of deductions. Astonishing isn’t it?
· Another 85 million Americans claimed more than 500 Million dollars worth of “standard deductions”. Some of these people shortchanged themselves to take the easy way out.

Here is your chance to claim a piece of that Trillion dollar pie. The secret is in your documentation, keep good records. Suggestion: buy a file cabinet (a deduct the cost of it as part of your business expenses or tax preparation costs) and start organizing your receipts for 2009. If you do not have time to do it, then hire someone part-time to do it (and deduct the cost). You can hire a youngster very inexpensively to sort through your receipts. Claim your deductions if you deserve them, and keep more money in your pocket. Don’t overpay taxes by overlooking tax deductions.

1. Accounting fees for tax preparation services, advice and IRS audits, including tax software if you meet the limits.
2. Alcoholism and drug abuse treatment.
3. Amortization of premium on taxable bonds.
4. Appraisal fees for charitable donations or casualty losses.
5. Appreciation on property donated to a charity.
6. Casualty or theft losses.
7. Cellular telephones required for business.
8. Cleaning and laundering services when traveling.
9. Commissions and closing costs on sale of property.
10. Contact lenses, eye glasses, and hearing devices.
11. Contraceptives, if bought with a prescription.
12. Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies.
13. Depreciation of home computers.
14. Dues to labor unions.
15. Education expenses to the extent required by law or your employer or needed to maintain or improve your skills.
16. Employee contributions to a state disability fund.
17. Employee's moving expenses.
18. Federal estate on income with respect to a descendent.
19. Fees for a safe-deposit box to hold investments.
20. Fees paid for childbirth preparation classes if instruction relates to obstetrical care.
21. Foreign taxes paid.
22. Foster child care expenditures.
23. Gambling losses to the extent of gambling gains.
24. Hospital services fees (laboratory work, therapy, nursing services, x-rays, and surgery).
25. Home office expeneses, if your home is your primary place of business.
26. Impairment-related work expenses for a disabled individual.
27. Improvements to your home.
28. Investment advisory fees.
29. IRA trustee's administrative fees billed separately.
30. Lead paint removal.
31. Legal abortion expenses.
32. Legal fees incurred in connection with obtaining or collecting alimony.
33. Margin account interest expense.
34. Medical aids such as crutches, canes, and orthopedic shoes.
35. Medical transportation, including standard mileage deduction and lodging expenses incurred for medical reasons while away from home.
36. Mortgage prepayment penalties and late fees.
37. Nursing home expenses that are primarily for medical expenses.
38. Out-of-pocket expenses relating to charitable activities, including the standard mileage deduction.
39. Part of health insurance premiums if self-employed.
40. Penalty on early withdrawal of savings.
41. Personal liability insurance for wrongful acts as an employee.
42. Points on a home mortgage and certain refinancings.
43. Protective clothing required at work.
44. Real estate taxes associated with the purchase or sale of property.
45. Reservist and National Guard overnight travel expenses.
46. 50% of self-employment tax.
47. Seeing-eye dogs for the handicapped or guard dogs for a business.
48. Seller-paid points on the purchase of a home.
49. Services of a housekeeper, maid, or cook needed to run your home for the benefit of a qualifying dependent while you work.
50. Special equipment for the disabled.
51. Special schools and separately stated feed for medical care included in tuition.
52. State personal property taxes on cars and boats.
53. State sales taxes – this write off makes sense primarily for those who live in states that do not impose a state income tax.
54. Student loan interest – even if paid by the parents (you cannot be claimed as a dependent by your parents)
55. Subscriptions to professional journals.
56. Theft of embezzlement losses.
57. Trade or business tools with life of year or less.
58. Uniforms and work clothes not suitable for street wear.
59. Union dues
60. Worthless stock or securities.