How to Have More Tax Write Offs
As the old saying goes, taxes are one of only two things that are certain in this life. However, there are a number of ways that you can reduce this obligation. Take advantage of all of the deductions available to you.
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Instructions
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Common and Everyday Expenses That Are Deductible
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Deduct medical diagnoses, treatments or preventive care. Also deduct prescription drugs, doctor and dental visits, surgery, hospital services, lab fees, acupuncture, drug and alcohol addiction treatments, and many other services.
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Deduct state, local and foreign income taxes on your federal return.
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Deduct the points on a mortgage in full in the year they are paid. Remember that points paid for refinancing generally can only be deducted over the life of the new mortgage. Deduct the home mortgage interest.
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Deduct interest payments if you are paying down a student loan.
If You're Feeling Charitable, Look at the Deductions You Can Take
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Deduct any donations of cash or goods to qualified non-profit organizations.
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Deduct membership fees or dues you pay to a qualified organization. Do your homework before taking this deduction, as many types of dues do not qualify as deductible.
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Deduct unreimbursed out-of-pocket expenses incurred in assisting any nonprofit organization.
Business Expenses
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Deduct unreimbursed expenses for travel and transportation in connection with your employment. Include a reasonable amount for meals and lodging while away from home overnight.
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Deduct any capital losses in increments of $3,000 per year.
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Deduct any required uniforms and work clothes not suitable for street wear.
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Identify and deduct the purchase price of tools for use at your job or cellular phones required for business.
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Tips & Warnings
Many deductions are subject to limitations; check local tax laws.
Do not embellish your numbers.
References
- Photo Credit tax time image by Tom Oliveira from Fotolia.com
