Looking for those missed tax deductions?
None of us are big fans of tax time and preparing for it sometimes requires more time than what a tax professional expends. Here are some deductions that are generally missed on tax returns. You may be entitled to these and more when you are ready to file.
They may make the difference in whether you will have to write a check, or the IRS will be writing you a check for your return this year.
You can deduct mileage for medical care. The 2009 deduction is 24 cents a mile but with small children, this can add up quickly. Don’t forget if you do charitable work at a 501 c 3 community, the mileage is also deductible.
Expenses for your job search
If you have searched for a job in the same field before your layoff, you can deduct the expenses for your job search. This can be quite significant since you may be like so many workers that have been out of work for most, if not all of the year.
Cut gambling losses
Save your receipts! Gambling losses can be deducted to the extent of gambling winnings reported on Form 1040, line 21. They must be clearly identified on the dotted lines next to line 28.
Claim dependent parents
If you are responsible for one-half of your parent’s living expenses, they can be a dependent. Don’t forget to calculate medical expenses, housing and insurance, food as well as transportation. The parent(s) don’t have to live with you. If you paid less than 50 percent of their care, you may still be able to use the Multiple Support Declaration.
If you paid for some financial advice, deduct it.
You spend about 100 days a year working just to pay your taxes. There is no joy in having to pay more taxes, so lessen the burden. Get as many deductions as you are entitled. Don’t forget that you can file amended tax returns for up to three years. Again this year, many of the large tax companies will take a look at your last tax return to determine if you are entitled to more deductions than you received.