What Can I Deduct On My Taxes For Maximum Benefit?

What can I deduct on my taxes is a question I am often asked as a tax accountant. In the 18 years I have been preparing tax returns for individuals and businesses I have tried to answer this question numerous times. Following is a list of deductions that in my opinion satisfy the widest range of taxpayers.

Moving expenses can be deducted if you had to change your residence during the current tax year because of a change in employment. There are tests to meet but you are entitled to deduct transportation, storage of household goods, lodging, and expenses incurred while house hunting.

Everyone in America should have a small business on the side so they can take advantage of numerous tax deductions. If you have a profit objective you can deduct your internet, computer expenses, home office, mileage, medical expenses if properly structured, and cell phone just to name a few. Talk to your tax advisor about these deductions and make them aware so they can help you with documentation and deductibility.

This next one is one of my personal favorites and one that most tax professionals are not even aware of. Within the past 1 to 2 years have you loaned money to a family member or friend and not been repaid? Amazingly you can deduct this as a worthless debt on your personal tax return.

A little known deduction is miles driven to and from doctor and hospital visits. Also miles driven for a charity such as a church are deductible. Consult your tax advisor for the rates as they change each year but start keeping track of them now so you will not miss out at year end.

Educator expenses found on line 23 of the 1040(2007) is one that applies primarily to teachers. When a client who is a school teacher asks me what can I deduct on my taxes I immediately make them aware of this deduction. Consult with your tax advisor for current year limits and proper documentation.

Deducting your dependent children is done by everyone but are you aware of the different credits available for these children. I know of the child credit you say but are you also aware of the additional child credit. If you have been preparing your own tax return it is possible you have been missing this one.

Often times I will prepare tax returns for clients who receive a K-1 from an S-Corporation or Partnership. Like other self employed individuals they are entitled to deduct expenses that they have not been reimbursed for. Most tax preparers will try to take the expenses on Schedule A as an itemized deduction. But there is another far better way. On Schedule E as an unreimbursed expense. Consult your tax advisor to make sure you are not missing this one.

When you work for someone else you may be incurring expenses that are deductible if your employer is not reimbursing you. Unreimbursed employee expenses is the category these fall under. Consult your tax advisor to make sure you are taking full advantage of these deductions.

What can I deduct on my taxes has been asked by every taxpayer since 1913. If you have found the answer to this question in the foregoing paragraphs then I am glad. However, if not or you have other tax related questions please feel free to contact me. If you follow the links at the bottom of this page to my web site you will find my email address as well as a lot of other information. Feel free to email me and either I or a member of my staff will respond to your question.

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