Income Tax Deductions That Are Easily Overlooked
Which income tax deductions are the most overlooked? How can you cash in?
• Cellular Telephone bills. Any time you use your cell phone for a business call, your call may be deductible.
• Contact lenses and glasses. If you bought contact lenses or glasses over the past year, they may be tax deductible.
• Moving expenses. If you moved more than 50 miles for a change of employment and your new employer did not pay for your moving expenses, you may deduct them.
• Orthopedic shoes. Your normal pair of shoes may not be used, but any additional costs you've incurred because they're orthopedic may be tax deductible.
• Education fees. If you've paid for additional training or seminars to further your education about your career, those fees may be tax deductible.
• Business gifts. Any gifts to individuals for expressing your gratitude for their help with your business.
• Appraisal costs. If you've paid someone to determine how much a charitable gift is worth or to determine how much money you've lost in a disaster, those costs may be tax deductible.
• Laundry services on a business trip. If you've paid to have your laundry cleaned on a business trip away from home, those expenses may be tax deductible.
• Tax preparation fees. If you've paid someone to prepare your taxes the previous years (any accountant fees, tax guides, or computer programs) are tax deductible.
• Work clothes. If you have to buy certain clothes for work, but you wouldn't ordinarily wear the clothes, they are tax deductible as a business expense.
• Exchange student fees. You may claim up to $50 a month in housing, support, and food for a live-in exchange student as a deduction, as long as you aren't reimbursed.
• Gambling losses. If you lost money gambling, the amount you lost minus your winnings may be deductible.