Deductible vs. Non-deductible – A Simple Guide
Taking advantage of the tax deductions you’re entitled to is an easy way to reduce your tax bill and keep more money in your pocket. When taking deductions on your income tax return, be sure to keep sufficient backup documentation to substantiate your claims, should the IRS come calling.
The following is a list of the most commonly claimed tax deductions and should be used as a general guide, only. Certain deductions are subject to IRS limitations and/or conditions, therefore taxpayers are strongly encouraged to discuss their unique tax situation with a qualified tax professional.
Work Deductions
- Unreimbursed employee business expenses: travel, phone, meals
- Work-related education expenses
- Continuing professional education expenses
- Professional dues
- 50% of self-employment tax
- Health insurance premiums, if self-employed
- Special work clothing, such as uniforms
Home Deductions
- Mortgage interest
- Real estate taxes
- Home office expenses
- Job-related moving expenses
- Points paid on a new home loan or refinance
Investment Deductions
- Interest expense
- Travel to manage investment property
- Capital losses
- Loss for worthless investments, bad debt
- Investment-related publication subscriptions
- Contribution to traditional IRA, Keogh, SEP, SIMPLE, or 401(k) plan
Personal Deductions
- Health insurance premiums
- Fees for tax planning and preparation
- State and local income taxes
- Personal property taxes
- Foreign taxes paid
- Charitable contributions
- Mileage or expenses incurred for charitable work
- Casualty and theft losses
- Student loan interest
- Alimony paid
For more information on tax deductions or another tax matter, contact us today for immediate assistance.
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