Tax Deductions Not to be Forgotten About - Look here before you file

Category: Tax Law and Planning

Courtesy of James Jimenez, CPA of Fass and Associates in Parsippany, New Jersey:

Don’t Miss These Often Overlooked Deductions

If you itemize deductions on your tax return, every additional deduction you find will save you money. Here’s a sampling of often-missed deductions. As you review the list, be aware that certain miscellaneous deductions are deductible only to the extent they exceed 2% of your adjusted gross income (AGI), and medical expenses are deductible only to the extent they exceed 7.5% of your AGI. Also, itemized deductions are limited for higher-income taxpayers.


Often-missed deductions:

• Disaster losses not reimbursed by insurance.
• Job-hunting travel and telephone expenses.
• Employment agency and job counseling fees.
• Costs for resume preparation.
• Union or professional association dues.
• Specialized work clothing or small tools used at work.
• Points paid by you on a new home loan.
• Points paid by a seller on your behalf.
• Points paid on refinancing your home mortgage (deductible pro rata over the life of the loan).
• Remaining undeducted points on a prior refinancing when you refinance again.
• Your actual expenses or 14¢ a mile for driving in doing charitable work (larger deduction if driving is in conjunction with 2005 hurricane charity work).
• Gambling losses, but only to the extent of your winnings.
• Fees paid for the preparation of your tax return. "

And an extra from me, certian legal fees.