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Tax deductible items are overlooked on many occasions even if you have a tax professional preparing your income tax returns. If you are doing them yourself then you definitely need this information. 1. Miles driven for medical related incidences are deductible as an itemized deduction. The rate is $.24 for 2009 and $.16.5 for 2010. Miles are totaled for doctor visits and hospital visits. Start adding them up and you will be amazed. Think about it on a weekly or monthly basis and then multiply by 52 or 12 respectively. 2. Most know that mortgage interest is deductible but did you know the interest you pay on a 2nd home is also deductible? Savvy tax payers will include their motor home in this deduction if it has a working bathroom and kitchen. 3. Charitable deductions are made and often forgotten about. Sometime we just cannot remember the box of cookies we bought from our neighbor's daughter who is with girls scouts as well as many other donations throughout the year. Add them up and you will not be sorry. 4. If you had to move during the year for work then do not forget moving expenses. You must meet certain tests so be sure to discuss this with your tax adviser. Tax deductible items include actual out of pocket expenses for oil and gas. Also include expenses for storage of household goods and lodging expenses. 5. Alimony is deductible by the payer and reportable by the recipient. Do not pass this up as this can take a little pain away from the amount being paid each month to the ex. If you are in a 28% tax bracket and the alimony amount is $1000.00 per month then the annual tax reduction is $3,360. 6. Interest for loans to pay education expense are a deduction. With graduation comes so many changes and mail gets lost and misplaced or just does not get forwarded. Take advantage of this deduction by being sure you know how much interest was actually paid for the year. 7. Taxes withheld from your paycheck that have been sent on to your state on your behalf by your employer are deductible. Also if you owed your state for taxes from the year before that you paid during the current tax year do not forget this tax deductible item. 8. You can create a capital loss on your individual tax return by deducting worthless debts. These are loans you have made to family and friends that have not been repaid. Capital losses go nicely against capital gains.
9. Losses from business endeavors will be covered in other articles but for the present let me just say do not be timid to take losses on line 12 of your 1040 which arise from self employment. If your venture was intended to turn a profit then you should be taking the deduction. 10. When a family member moves into another home you own often you will forget to report it. The incentive to reporting is that this is a tax deductible item. You can usually create a loss to be reported on your 1040 when these deductions are properly accounted for.
Zach Allred is a tax accountant with twenty years experience. Visit Small Business Taxes [http://www.small-business-taxes-help.com/index.html] to sign up for his Free Newsletter. Also visit Federal Tax Deductions [http://www.small-business-taxes-help.com/federal-tax-deductions.html] to read other free articles.
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