EVERYONE thinks about this. Those of you have already filed your personal income tax returns and those still getting their documents together.
There are MANY deductions that are missed that generally fall into the following categories:
- Business Deductions – for employees who incur expenses that are not reimbursed and for sole proprietors
- Child Deductions and Tax Credits – including exemptions, college costs and adoption expenses
- Interest – on your home, a second home, a rental property, and sometimes even points on a refinancing
- Investments – in addition to stock losses, have you considered deducting fees and expenses related to your retirement plan?
- Medical expenses – dozens of available medical expenses are available that most people do not know about that under the right circumstances are deductible
- Taxes – many people deduct real estate taxes but are you aware there are others that many people miss?
- Other – this includes many things such as alimony, educator expenses, charitable contributions and gambling losses to name a few.
There are scores of every day available tax deductions but I am summarizing my favorite top ten list of the most missed deductions based on my experience in the past few years:
- Donation of appreciated stock is possibly my all time favorite tax break because not only do you get to deduct the fair market value as a charitable contribution, but you also get to avoid any capital gains!
- Caribbean convention expenses – no I am NOT kidding!
- Computer and software expenses
- Childbirth preparation classes
- Stop smoking programs
- Sales taxes – what you paid often exceeds what the IRS allows. In addition, sales tax on large purchases can be taken over and above what the IRS allows.
- Personal property taxes and Florida intangible taxes
- Auto registration
- Job hunting – there are a LOT of expenses that fall under this category