Whether you’re preparing your own taxed or have an accountant prepare them for you, you want to be sure not to miss any deductions you may be entitled to. In the medical expenses area, they are considered deductible when they exceed 7.5% of your adjusted gross income. Besides doctor’s, dentist’s and optometrist’s care, there are many less obvious items that you may overlook.
The often forgotten expenses can include blood sugar test kits, childbirth classes, drug and alcohol addiction treatment, crutches, guide dogs, wigs for individuals with medical hair loss, fertility treatments and lead based paint removal.
Taxes paid by you can be deductible also and can include sales taxes on aircrafts, boats, mobile homes and home building materials. Work related expenses may also be deductible. Some examples of these would be work related conventions, work related cell phone service costs, any fees paid to an employment agency, passport fees, if required for work, and also security clearances.
Another deduction to look at is interest paid on your home or a second home. Included in this area are first or second mortgages, home equity loans or refinanced mortgages. Gifts to charity may be itemized for deductions. You must have documentation in the form of a cancelled check or a receipt from the charity.
Some other miscellaneous deductions include alimony, day camps for children while you’re at work, fees for safety boxes used for storing taxable income stocks and bonds or investment documents. The decision to itemize will be based on whether your standard deduction against your income will be greater than the sum of all of your allowable itemized deductions. It’s worth pulling out your calculator and comparing the two figures to see which route you should take.