Tax Deductions

For example, the cost of your work uniforms and the related cleaning costs are deductible. This doesn’t apply to the cost of normal, every day clothing worn to work, but if your employer requires you to wear a uniform or clothing unsuitable for streetwear, this could save your several hundred each year. People like nurses, restaurant staff, police, firemen, and deliverymen are most affected by this deduction.

Below are ten deductions you may qualify to take:

1.Alimony

If you pay alimony, you can deduct your payments. Be sure to include your ex-spouse’s social security number, as he or she will be required to claim these payments on his or her return.

2.Educator Expense

Teachers, counselors, principals, and aides at public and private elementary and secondary schools can claim up to $250 of their out-of-pocket expense spent on school supplies.

3.Job-Hunting Costs

There are two requirements that must be met before you can deduct your job-hunting costs. First, you must look for work in the same field in which you are currently employed. And, you cannot take a substantial break between your last job and when you start looking for a new job. This includes such expenses as fees for resume preparation, mileage, and parking fees.

4.Casualty Loss

You don’t have to live through a natural disaster or fire to deduct a casualty loss. Losses from vandalism, theft, and automobile accident damages, provided it wasn’t the result of driver negligence, are also eligible. There is a limit to how much you can claim though. The amount of the loss must be reduced by $100, then must exceed 10% of your adjusted gross income. So, that simple fender bender may not qualify, but if you returned home from your vacation to find your house had been broken into and trashed, you could probably benefit. Be sure to keep a police report on file in the event of an audit.

5.Moving Expense

If you move because of a change in job location or because you took a new job, you may be able to deduct the cost of your move, provided the move is closely related to date you begin work at the new location. There are two tests you must past to qualify. First, is your new job location is at least 50 miles farther from your former home than your old main job location was? Second, if you are an employee, did work full-time for at least 39 weeks during the 12 months right after you move? Or, if you are self-employed, did you must work full-time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you move? If you can answer yes to both questions, then you may qualify.

6.Special Needs Home Improvements

Home improvement projects meant to make your home more accessible for a handicapped or chronically ill resident may be tax deductible, provided you follow the doctor’s orders and IRS regulations. Some commonly deductible projects include: ramp installation, widening doors and hallways, installing rails and support bars in the bathrooms, and lowering kitchen counters.

7.Child Labor

If you own a sole proprietorship or partnership in which you and your spouse are the only partners, you can hirer your child and take his salary as a business expense deduction. Plus, there is no Social Security tax on your age 17 or younger child. If you paid him less than $4,750, your child would probably avoid any additional taxes.

8.Charitable Contributions

Whether you contribute your money, or unwanted items to charity, you can take a deduction. When volunteer with your church or a charitable organization, you can deduct your mileage at a rate of 14 cents a mile. If you are giving away unwanted clothes, furniture, or appliances, keep a record of the items along with the fair market value, which you can usually estimate based on prices at the local Goodwill or Salvation Army. Of course, you will always want to get a receipt for your donation whether it be in cash or goods.

9.Business Related Expenses

If you purchase business related items, which are not reimbursed by your employer, you can deduct the cost from your personal taxes. Examples of business related expenses might be:

Laundry service while traveling on business
Hand tools
Uniforms
Internet service (if used for business purposes)
Cell phone and cell phone service
Subscriptions to professional magazines or organizations
Luggage
Briefcase

Additionally, if you purchase gifts for clients, the cost of those gifts may be deductible up to $25 per gift, per client.

10.Stop Smoking

If you participate in a stop smoking or weight loss program under the supervision and direction of a doctor, you may be able to deduct the cost of the program. Membership fees, monthly dues, doctor’s visits, prescription drugs, and therapy could be deductible, but not food.