When we include our tax deductions, we can always remember the big four: Mortgage interest, state income taxes withheld or paid, real estate taxes, and charitable contributions. Some of the forgotten deductions are medical expenses. Starting in 2013, the floor is higher (10%) for some taxpayers. Most people believe they won’t exceed the required percentage floor, so they don’t remember to include them. But, on many state tax returns, they are deductible 100% if you itemize. Some other forgotten deductions are as follows:
Unreimbursed business or work expenses (Uniforms, small tools and supplies needed to do your job, laundry away from home, phone calls, faxes, and travel). If you have unreimbursed work or business expenses, you might have to file Form 2106. The total amount listed on this form for your unreimbursed work and business expenses will be transferred to Schedule A, under Miscellaneous Deductions.
Tax preparation, consultation, investment, or planning fees
Auto tags for your vehicle, boat, trailer, truck, recreational vehicles, motorcycles, horse trailers (anything you pay an annual tax on owning)
Legal or other fees to manage or defend your income (professional athletes get to deduct fines they pay to their leagues for misconduct)
Gambling losses up to your winnings (keep all your receipts, statements, or log book on what you spent on gambling to prove your losses)
Don’t delay! Schedule an appointment with our office today to find out how to maximize tax saving opportunities. We can be reached at (602) 264-9331.