10 Common Things We Forget to Deduct
There are many different deductions that we flat out forget to take on a yearly basis. Learn about ten common things we forget to deduct with help from a certified financial planner TM professional with over a decade of experience in wealth management in this free video clip.
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Hi, I'm Samantha Fraelich and I'm a Certified Financial Planner Professional. And I'm here to help remind you of 10 common items that we forget to deduct. Number one, investment management fees. Number two, home office related expenses. Number three, clothes you donate to any type of charity. Number four, medical expenses, but keep in mind there's a wide variety for the definition of what those medical expenses maybe; un-reimbursed business expenses, refinancing points on a mortgage, hope and lifetime learning credits, state sales tax if applicable, care provider for a disabled child or spouse and finally, moving expenses including first jobs for those college students out there. Investment management fees. If you work with a financial advisor and they charge you a management fee on your assets or an hourly planning fee, these expenses can be deductible. It may not be listed on your 1099 report, so be sure to ask your investment advisor if these types of expenses apply to you. Home office related expenses; if you have a home office, keep in mind that you can't deduct the expenses for your entire home and only the portion of expenses that apply to your home office. For example, if you have a cleaning service and they come in and clean your house every week, you can only deduct the percentage of that expense for the space that your home office actually takes up. Clothes that you donate. Many of us have children that grow out of their clothes or we want to clean out our closets and we drop the clothes in a box. Be sure to keep a receipt of what clothes you drop off and what you think the approximate value maybe as that can be deductible. Most of us know that medical expenses are deductible, but sometimes we don't realize how large the definition of those medical expenses can be. Keep in mind that orthopedic shoes, wheelchairs, eyeglasses, contact lenses and other types of medical expenses can be considered deductible. Un-reimbursed business expenses. If you work for an employer and you have a W-2 income; un-reimbursed business expenses; if you take classes or other types of training to improve your job skills, that can be deductible. If you pay union dues or joined an association or have industry specific journals or other types of subscriptions, these can also be deductible. If you're a student or if you have a student in your home, you may want to look into the hope and lifetime learning credits. If you live in a state that doesn't have an income tax, you should try to keep all of your receipts because state sales tax can be a deduction. If you've recently refinanced, refinancing points that you paid can also be deductible. Refinancing points. If you've recently refinanced your mortgage, talk to your tax advisor about what are the points you paid on your previous mortgage maybe deductible. If you have a disabled child or a spouse, the care and the cost that are associated with that care may also be deductible. If you've recently moved, especially if that move is job related, those expenses can also be deductible. Don't forget that if you're a college student and you're starting your first job. Again, I'm Samantha Fraelich and I hope that you remember these ten common items we forget to deduct the next time you go to file your taxes.