There are some expenses such as medical bills, moving costs and school tuition that you can deduct when you file your tax return; however, it is very important to learn the details about each category in order to avoid future problems. Check the website of the Internal Revenue Service (IRS) for the most accurate information.
According to “Publication 502; Medical and Dental Expenses” published by the Internal Revenue Service in 2009 (See Reference 1), you may deduct the medical and dental expenses you had during the year for you, your spouse and dependents. You may report medical expenses such as legal abortions, acupuncture, inpatient alcoholism treatment, breast reconstruction after a mastectomy, artificial teeth, body scan, contact lenses, chiropractic treatment, psychiatric or psychological treatment and eye surgery among others. You may also deduct insurance policies you pay for, but not deduct those your employer pays for. You may deduct the cost of prescribed medications and also the cost of transportation if it is directly related to medical care. You may not deduct the costs of aesthetic surgery or treatments that are not medically necessary.
According to “Publication 521; Moving Expenses” prepared by the IRS in 2009 (see Reference 2), you may deduct moving expenses you had during the year if you moved in order to start a new job or your job location changed. You should fulfill three requirements in order to deduct your moving expenses: You moved within a year of starting your new job, your new job location is at least 50 miles farther from your former home than your prior job location was and you worked for 39 weeks (if you're an employee) or 78 weeks (if self-employed) in the first 12 and 24 months respectively after you arrived in the new job location. You may deduct the cost of transportation, traveling and some storage expenses. However, you must also report any reimbursement you received from your employer for moving expenses.
Tuition and Fees Deduction
According to the IRS's 2009 “Publication 970; Tax Benefits for Education” (see Reference 3), you may deduct your taxable income by up to $4000 for education expenses. You may deduct qualified education expenses such as fees and tuition you had during the year for you, your spouse or dependents. In order to claim such deduction you must be eligible students--that is, those enrolled in one or more courses in a postsecondary educational institution eligible for U.S. Department of Education student aid programs. You may not deduct personal or living expenses, insurance or transportation.
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