Most People Forget These Important Tax Deductions

 

The deadline for tax time is almost here and that means that a lot of people are scrambling to get their 2007 taxes done. This frantic last-minute activity frequently causes individuals to miss out on some of the tax deductions that can save them money. If you fall into that category, you could probably benefit from reviewing a checklist of tax deductions. Go through the list one at a time and make sure that you didn't miss something that you should have deducted.

Here are some of the tax deductions you won't want to forget to take:

  • Charity donations. If you gave a big of toys to the Goodwill and got a receipt, you can deduct it. If you volunteered time and services at the local soup kitchen or school, you might be able to take a deduction. Look carefully at last year's good deeds and determine whether you can get a break for them now.
  • Childcare and medical expenses. If these areas weren't taken care of in other ways (such as health insurance) then you might be able to deduct them.
  • Job relocations. If you moved last year as a direct result of your job and your employer didn't foot the bill then you can deduct the expenses on your taxes.
  • Jury service pay that you didn't receive. If you had jury duty and you got paid during that time by your employer then you might have had to give the traditional jury pay to the employer in exchange for the higher rate. If you did that, you get to deduct the amount of the jury pay from your taxes.
  • Last year's state income taxes. If you had to pay money to the state last year then you get to include that on your federal taxes this year.
  • Self-employment deductions. There are a whole slew of deductions that you can take if you're self-employed. A portion of your rent or mortgage and your utilities can be deducted if you work from a home office. Health insurance that you pay for by yourself can be deducted. And this applies even if you're only self-employed part-time (such as earning extra income through freelance writing ) as long as you report your income as well as the deductions on your taxes.
  • Student loan interest deductions. If you spent some of last year paying the interest on your student loans then you might want to look into the details of this one. The first portion of the interest paid is deductible on your taxes.
  • Travel and entertainment expenses for work. There is a fine line to be walked here but you can get some money back through tax deductions if you traveled or entertained for the purpose of your job.

The main thing to remember is that there are a lot of different deductions that you can take which will make your taxes benefit you. Even though it's getting late in the year for completing your taxes, you should take the time to do your research and get as much money back as possible. Schedule a day off of work and sit down with your taxes. The money is better off in your pocket than in Uncle Sam's!

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Comments 13 comments

Whitney05 profile image

Whitney05 8 years ago from Georgia

These are great reminders! I'm doing a little more charity donations next year. t's an easy deduction, and it makes you feel good by donating.


Bob Ewing profile image

Bob Ewing 8 years ago from New Brunswick

tax tips, always useful, thanks


amy jane profile image

amy jane 8 years ago from Connecticut

Thank you for this list! i didn't think about the home office being a deduction when you are only a part-timer :) Great advice.


Jason Stanley profile image

Jason Stanley 8 years ago

Thanks for the tips. Now do you have a cure for just not getting them done on time?


seamus profile image

seamus 8 years ago

My understanding is that you can get a deduction on job-related expenses only if you did not get reimbursed by your company.

Childcare is one that a lot of people don't seem to know about.

Thanks for this!


Dumbledore profile image

Dumbledore 8 years ago from Somewhere in Ohio

Tax deductions are important to all of us butsapear. it would ne nice if they would dissapear.


P Morgan profile image

P Morgan 6 years ago

Thanks for the tips. Timely!


daPuma5 5 years ago

Nice list of deductions. I donate many hours to charity and community. I hadn't thought about those,


classicalgeek profile image

classicalgeek 5 years ago

If you donate services or time to charity, you cannot claim the value of your time or services as a tax deduction, no matter how useful or important. However, you can deduct transportation, tolls, and other expenses incurred. Just a heads up.


pharmacist profile image

pharmacist 5 years ago from Whitinsville, MA

As tax time approaches, these hints are great reminders! Thanks for putting them together.


NJ Tax Records 5 years ago

Excellent hub!


ajcor profile image

ajcor 5 years ago from NSW. Australia

I don't know how it works in the US but in Australia you have to be careful if in your tax return, you claim a deduction/percentage of your mortgage and outgoings as this can backfire on you when you go to sell the house and you then have to pay capital gains on the sale

Again if you are in a profession such being a Church Minister you can claim your specific clothing and it's dry cleaning

Education is another - you can make a claim if your employer doesn't pay for to study or buy specific books in order for you to improve yourself in your area of work - these are legitimate expenses...just a thought....cheers


driverfor 5 years ago

An intriguing hub. Very interesting!

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