Overlooked Deductions
Commonly Missed Deductions
Paying taxes is tough and can be downright painful. Americas Tax Firm wants to remind you of some of the most commonly missed deductions below.
Casualty or Theft Losses
If your property was damaged or destroyed due to natural disaster, you may deduct casualty and theft losses. However, you must reduce the loss by the amount of any insurance reimbursement or other reimbursement you expect to receive.
Medical Purchases and Expenses
Contact lenses, eyeglasses, and hearing devices, as well as breast pumps, childbirth classes, and certain prescription contraceptives can be deducted. If a dependent had inpatient treatment at a clinic for alcohol or drug abuse, the meals and lodging at the clinic during treatment are considered deductions. If you are self-employed, you can deduct any premiums you pay out for health insurance. It is important to note that your total medical expenses must be more than 10% of your adjusted gross income on Schedule A to qualify.
Personal Cell Phone Use
If you use your cell phone for business, you can deduct the expense.
Charitable Mileage
Most taxpayers know they can deduct donations made to charities, but some forget to record their mileage when volunteering. Mileage driven for volunteer work and for charitable organizations and functions is tax deductible. Miles, parking fees, and any tolls qualify for the deduction. If you did not drive, you can still deduct your fees if you used public transportation.
Certificates of Deposit (CDs) Withdrawal Penalties
If you withdrew money out of a CD early and were charged a penalty, you can deduct that on your taxes.
Education Credits
Did you or your dependents take classes for your job? The Lifetime Learning Credit as well as the American Opportunity credit allows you to deduct education expenses.
Mortgage Points
Check the 1098 statement your lender should have given to you. Report this amount, along with the interest you paid on your mortgage.