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!
- The 13 Most Overlooked Tax Deductions - Kiplinger.com
- 50 Easily Overlooked Tax Deductions
- Most Overlooked Tax Deductions - Lifehack.org
- Best Tax Deductions - LoveToKnow Best
- The Ten Most Missed Tax Deductions - Forbes.com
- Top 11 Oddball Tax Deductions - Kiplinger.com
- 10 don't-miss tax breaks - Feb. 14, 2007