| It's that time of the year again. Time to gather your | | | | Tax-deductible expenses include vehicle expenses |
| receipts and documents in preparation for tax filing | | | | (other than commuting), travel expenses, uniforms, |
| season. This year, perhaps more than ever, taking | | | | union dues and continuing education expenses. |
| advantage of every tax deductible expense is not just | | | | 6. Student loan interest paid by Mom and Dad. When |
| legal -- it's smart. Waiting until the last minute can cost | | | | parents pay back their child's student loan, the IRS |
| you big time. So, get started early. | | | | treats it as though the money was given to the child, |
| Some 46 million Americans itemize deductions on our | | | | who then paid the debt. So, a child who is not claimed |
| 1040s -- claiming nearly $1 trillion worth of deductions. | | | | as a dependent can qualify to deduct up to $2,500 of |
| Another 85 million taxpayers claimed more than half a | | | | student loan interest paid by mom and dad. |
| trillion dollars' worth of standard deductions. Some of | | | | 7. Moving expense to take first job. Don't forget that |
| those who took the easy way out probably | | | | job-hunting expenses incurred while looking for your |
| shortchanged themselves. | | | | first job are not deductible; but moving expenses to |
| However, millions of taxpayers overpay their taxes | | | | get to that first job are. And you get this write-off |
| every year by overlooking just one of the | | | | even if you don't itemize. If you moved more than 50 |
| money-savers listed below. Here are 10 of the | | | | miles, you can deduct the cost of getting yourself and |
| most-overlooked tax deductions. Claim them if you | | | | your household goods to the new locale. |
| deserve them, and cut your tax bill to the bone. | | | | 8. Child-care credit. A credit is so much better than a |
| 1. State sales taxes. While every taxpayer has a shot | | | | deduction: It reduces your tax bill dollar for dollar. So |
| at this write-off, it makes sense primarily for those | | | | missing one is even more painful than missing a |
| who live in states that do not impose an income tax. | | | | deduction that simply reduces the amount of income |
| 2. Out-of-pocket charitable contributions. The big | | | | that's subject to tax. |
| charitable donations or gifts you made during the year | | | | 9. Refinancing points. When you buy a house, you get |
| by check or payroll deductions are hard to overlook. | | | | to deduct points paid to get your mortgage. However, |
| But the little things add up, too, and you can write off | | | | when you refinance a mortgage, you have to deduct |
| out-of-pocket costs you incur while doing good works. | | | | the points over the life of the loan. That means you |
| If you drove your car for charity in 2008, remember to | | | | can deduct 1/30th of the points a year when it's a 30 |
| deduct the per mile limit. | | | | year mortgage. That's $33 a year for each $1,000 of |
| 3. Medical expenses. In addition to what you've spent | | | | points you paid. |
| on doctors, hospitals and medicine, other tax-deductible | | | | 10. Jury pay paid to employer. Does your employer |
| items include health insurance premiums, prescription | | | | pays your full salary while you are doing your civic |
| eyeglasses and contact lenses, hearing aids, medical | | | | duty but ask that you turn over their jury fees to the |
| transportation, equipment for disabled people, and | | | | company? The IRS demands that you report those |
| nursing home expenses. | | | | fees as taxable income. You always have had the |
| 4. Long-term care insurance premiums. Eight million | | | | right to deduct the amount, so you weren't taxed on |
| Americans now own long-term care insurance policies | | | | money that simply passed through your hands. But |
| and premiums may be tax deductible for individuals | | | | now tax forms include a line dedicated to this |
| and self-employed. Many people still overlook this | | | | deduction. |
| deduction for themselves or when assisting a parent | | | | For information on the 2008 and new 2009 tax |
| with their own tax filings. And, note that States are | | | | deductible limits and rules for long-term care insurance |
| increasingly allowing tax deductions or credits for the | | | | visit the Consumer Learning Center of the American |
| purchase of long-term care insurance. | | | | Association for Long-Term Care Insurance and click |
| 5. Unreimbursed out-of-pocket job expenses. | | | | on the box labeled Tax Deductible. |