Commonly Missed Taxed Deductions You Need to Know About

 The New Year means that the tax season will be upon us before we know it. Most of us will probably put off preparing our tax return until the very last minute because lets face it, preparing taxes can be tedious. When you finally do begin to prepare for this years dreadful tax day however, there are a few deductions you’ll need to keep in mind in order to ensure that you’re not paying more than your fair share to Uncle Sam.  

Did you spend some time looking for a job? If so, the expenses you incurred are deductible even if you didn’t land that job. Expenses such as fees paid to employment agencies or resume writing services are all included under expenses you can deduct.

If you’ve already paid off your mortgage, a new law that took into effect into 2008 will greatly benefit you. Now, you can write off your property tax, even if you don’t itemize deductions by increasing your standardized deduction by the amount of real property tax you could have claimed if you did itemize, up to $500 or $1000 on a joint return.

Most us know that charitable cash donations are deductible, but what about noncash contributions? You are permitted to deduct any charges you’ve made on your credit card for the purpose of charity in the year it was charged. Make certain however that you have proof of your purchase by asking the charity for any necessary receipts you’ll need to keep in the event of an audit. If you’ve donated clothing or any other items to organizations such as Goodwill, make sure you receive a written receipt for your records and remember that items must be considered in “good” condition or better. If you’ve volunteered for any charities, you are also permitted to deduct any mileage use while volunteering.

Still paying off those student loans? Any interest accrued on them is tax deductible as long as the loan is still currently owned by the lender.

Many insurance premiums, including long term care premiums based on age are potentially deductible. In order to qualify for this particular deduction, medical expenses must exceed 7.5% of your adjusted gross income (AIG).

Also, don’t forget to track any business expenses that you accrue throughout the year as these are also tax deductible. And whether you plan to prepare your taxes on your own or with the help of a professional, tax preparer costs are also deductible. Expenses such as tax preparation fees and even the portion of your legal and accounting fees related to tax planning are deductible if their total exceeds 2% of your adjusted gross income.

Tax preparation is never fun. Resolve to get a head start this year and keep these commonly forgotten deductions in mind so that come tax time, you can rest assured that you’ll be taking advantage of the deductions you’re entitled to. Remember,  as always each individual's circumstances can be different. Consult your tax advisor regarding questions and deductibility of interest.

Did you know that you can receive a discount on the Turbo Tax Federal Deluxe software just by being a member at El Paso Employees FCU? Visit our website and click on the Turbo Tax link to find out how!