Tax Deductions of Interest
Published on by: Earl Johnson, CPA
10 Commonly Unused Tax Deductions You Should Know
- 1. Refinanced Your Home This Year? Take the Points Off of Your Taxes
If you refinanced your home mortgage loan this year, the IRS will allow you to take the points, or the fees the bank charged you to refinance the loan, off of your taxes. For example, if you refinanced your mortgage on May 1, 2012, with a 20-year term, and $2,400 in points, you can write off 10 bucks per month, or $80, of those points on this year's taxes. - 2. Did You Get Physically Touched Up for Your Job?
While many people get, um, surgically enhanced purely for a self-esteem boost, you might have gone under the knife this year to make more money at your job. A Tax Court judge set a precedent when she allowed stripper “Chesty Love” to deduct the costs of her breast augmentation to make more tips on stage. If you and Chesty Love share a similar profession, your new body parts might also be considered a valid tax deduction. - 3. Driving to the Doctor
If you have an illness that requires out-of-town specialist visits, you can claim your mileage and parking costs as a tax deduction, if they exceed 7.5 percent of your adjusted gross income. - 4. Pencils, Pens and Play Things
As a qualified teacher, teacher's aide or school principal, you can claim up to $250 in credits for items that you bought and used in the classroom for educational purposes. - 5. Out of Town Job Hunting
Did you leave the state for a job interview while you were unemployed? Even if you used the rest of the time to work on your tan or visit art museums, you can write off your plane ticket and the cost of the hotel room for the night before your big interview. - 6. Medically Necessary Home Improvements/Additions
If it was necessary to alter your home in any way due to a medically necessary reason, you can claim the remodeling expenses as a tax deduction on your tax return. Some examples of medically necessary expenses include wheelchair entrance ramps, shower or bathtub access or hand rails near toilets and sinks. - 7. Moving Expenses
You might be aware that you can deduct job-related moving expenses from your gross income on your tax return. However, you might not be aware that you can also claim tax deductions for moving expenses associated with any pets you own – including dogs, cats, snakes, gerbils, frogs and lizards. - 8. Noncash Charity Items
Did you donate a significant amount of clothing to your local Goodwill store? Or, did you volunteer to drive your car to help senior citizens shop for food each week? Your approved documentation of these events can help you get a much-needed tax write-off. - 9. Laid Off Due to Outsourcing or Receiving Government-Funded Retirement Funds?
If you are receiving a government-funded pension due to your employer terminating its retirement plan, or TAA, trade adjustment assistance benefits, you are also entitled to a lesser-known tax credit. This health care tax credit pays up to 80 percent of your total yearly health coverage costs. If you feel that you qualify, contact your local IRS office for help obtaining this highly overlooked federal tax deduction. - 10. Spring Silverbells, Winter Snowdrops
If you are a sole proprietor that usually meets with your clients in your home office, you can write off a percentage of your yearly landscaping costs. The Tax Court also allows you to take part of your driveway repair costs, and even grass cutting fees, as a tax deduction, also.
Information Sources
DISCLAIMER: Information in this article is believed to have been reasonably accurate at the time it was originally published. As with any information posted online you should not consider it to be expert advice, and always consult with a CPA or certified tax planner for any tax questions or legal advice. The posting of this third party information on our website does not imply our endorsement of said third party information. The information provided is presented without any warranty of fitness for any particular purpose or application.
