When individuals prepare their own taxes, they often overlook some common deductions that could save them money.
When preparing your taxes, or if you have someone else do them for you, be familiar with these common 10 oversights.
1. Do you have someone prepare your own taxes?
Tax payers are entitled to deduct fees paid to a professional accountant for doing taxes. If you are having someone prepare your taxes, make sure to ask them about deducting the fees they charge you on your tax return. If not, then you better find a new tax preparer.
Also, if you prepare your own taxes you are allowed to deduct the cost of software you paid as well as any e-filing services that you paid to.
2. Do you pay union dues?
Dues, initiation fees for memberships, etc., are deductible.
3. Did you refinance your home?
With mortgage interest rates low now, a lot of people have refinanced or something. You are allowed to deduct points paid on the mortgage as well as certain costs on the refinance.
4. Do you have employee expenses that you paid?
You're allotted certain deductions for employee expenses paid out of pocket that you did not get reimbursed for. For example, if you are a loan officer, you can deduct marketing you paid to get business.
5. Did you have a casualty or theft loss?
As a taxpayer, you are allowed this deduction as well.
6. Do you wear glasses or contacts?
This would go on the Schedule A as long as you are itemizing things. Another good deduction as well is prescription medicines and insurance premiums paid by you. They are all deductible.
7. Did you pay any state or federal taxes the previous year?
This really helps to for people who owe tax in the current year that they are filling on the previous year. It will lower your tax liability.
8. Do you own a safe deposit box that holds special certificates, stock interest, etc.?
You are allowed to deduct this monthly fee. Just total the whole amount for the year and that is the amount you can claim as a deduction.
9. Did you or a loved one have major surgery?
If you or a loved one had major surgery, you can deduct the cost of the hospital fees, laboratory work, therapy, nursing services, surgery, etc.
10. Did you buy a new car or a boat?
You can deduct state taxes that you paid on the car and the boat.
Dan Pierce has degree in accounting and owns his own accounting business. He enjoys assisting people with setting up personal budgets and consulting with business owners about their business. E-mail: firstname.lastname@example.org.