Taxpayers can reduce their taxable income by using a standard deduction or taking advantage of the dozens of itemized deductions permitted by law. Many taxpayers know the common ones, like the deduction for mortgage interest paid during the year. Many aren't so obvious.
Here are some commonly overlooked deductions, as compiled by tax advisers at TurboTax (not all taxpayers qualify to take these itemized deductions):
- Personal property taxes on cars and boats.
- Points paid on home mortgage or refinancing loans.
- Job-related magazines, newspapers and professional journals.
- Cellular phones required for business.
- Union dues.
- Work uniforms.
- Fees for tax preparation or advice.
- Some gambling losses.
- Medical aids such as crutches, canes and orthopedic shoes.
- Hearing aids, eyeglasses and contact lenses.
- The cost of some stop-smoking treatments.
- Mileage incurred for medical transportation and charitable activities.
- Cost of a safe deposit box for investments or business.
- Job-seeking expenses.
- Worthless stock or securities.
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