Expenses To Keep Track Of During The Year
Household Expenses | Work Expenses | New Deductions | Investment Deductions

Every year we have clients that come to us who have not realized just how much money they are entitled to due to expenses they have simply overlooked.

Household Expenses

Medical: Heath Insurance Premiums, Co-pays, Doctor Bills not covered by Insurance, Dentists, Chiropractor, Mental Health, Prescriptions, Braces, Glasses, Physical Therapy, Medical Miles. (Medical Expenses over 7.5% of AGI is deductible on Sch. A)

Mortgage Interest: Home Equity Loans on Primary Residence, Paid to Banks or Owner Financing, RV & Boat Loans as long as you live in the vehicle (Points Paid line 801 & 802 from Settlement Statement. Buy can claim sellers points)

Home Improvements: Only if portion of home is used as business (Prorated to use of Home)

Real Estate Taxes: Houses, Condominiums, Mobile Homes, Camps, Time Shares (Claimed only in the year taxes were paid)

Excise Tax: on Cars/Trucks/R.V./Motorcycle/Some Recreational Vehicles

State Income Taxes Paid: Any income tax you pay into any State is deductible in the year you pay it (i.e. Your State Withholding)

Charitable Contributions: Tithing, Donations to Churches, Schools, Most non-profit Organizations (NOT To Own Family)

Non-Cash Contributions: Donating Clothes or personal property to qualifying charitable organizations (i.e. Your Church or Church Youth Group, Boy/Girl Scouts, Salvation Army, Goodwill, Libraries, Schools, etc.) Donating items such as: Books, Clothes, Food, Automobiles, Exercise Equipment, Used Tools, Bicycles, COmputers, Stock, Land, Houses, etc.

Charitable Mileage: Allotted so much per mile for Volunteer work. Driving your own care in doing work for a Non-Profit Organization or Church

Investment Expense: Expenses such as commissions or other expenses incurred while embarking on an investment

Personal Property Loss: Usually for uninsured victims of Fire, Acts of Nature, Vandalism, Theft. Lost must be more than 10% of AGI-Adjusted Gross Income

Collecting Money Owed You: Court and Attorney Fees, Private Investigators (Does NOT include Divorce/Alimony fees)

Tax Preparation: Accountants/Tax Preparer Fees

Child Care: You can deduct the amount you pay for Child Care (You must provide the providers' Social Security Number SSN or Employer Identification Number EIN)

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Work Expenses

Rule: one purchases and uses the following items at work and is NOT reimbursed for the expense:

Industry: Uniforms, Uniform Maintenance, Union Dues, Small Tools, Office Supplies, Trade Books, Training Expenses, Testing/Exam Fees, Parking Fees, Cell Phone, Pager, Qualifying Safety Equipment - i.e. Protective Clothing, Hard Hat, Safety Boots, Safety Glasses, etc. (Blue Jeans and Street Clothes are NOT a uniform nor are they considered protective clothing)

Professional: Cell Phone, Pager, PDAs (iPod Touch, iPad, Palm Pilot, etc.), Laptops, Netbooks, PC's, Long Distant Calls from Home, Business Cards, Letterhead, Entertaining Clients, Referral Fees Paid, Commissions You Pay, Motels, Seminar/Conference Fees, Overnight Travel/Meals, Taxis, Office Supplies, Trade Books, Licenses, Permits, Subscriptions to Professional Journals, Unreimbursed Business Mileage in your Personal Vehicle, Christmas/Birthday/Sympathy Cards to Clients, etc.

Self-Employed: Advertising, Insurance, Auto Expenses, Office Supplies, Postage, Repairs to Equipment, Supplies, Cost of Goods Sold, Part-time Help, Wages, Self-Employed Pension Plans (SEP/Simple Plan), Cell Phones, Pagers, PDAs, Computers, Phones, Utilities, Tools, Rented/Leased Property or Equipment, Uniforms, Alarm Systems, Entertaining Clients, Legal and Accounting Fees, Overnight Expenses, Hotels, Sponsorship of Athletic Teams/Events, Bank and Credit Card Fees, etc.

Truck Drivers: Hotels, Showers, Repairs to Equipment, Personal affects in the truck: Maps, Flashlights, Fly Swatter, Locks, Bedding, Coolers, Log Books, Pens, Paper, Batteries, Lumbers, etc.

Day Care Providers: Toys, Food, Snacks, Movies, Videos, Games, Gifts to Clients, Business Mileage to the Store

Gamblers: You can only claim a loss up to the amount you have won during the year. (You need receipts for the offset deduction)

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New Deductions

Educators Expenses: Any Elementary or High School Teacher expenses for educating (Excluded are Coaching expenses and College or Trade School teachers expenses)

Education: Tuition and Fees, Books, Interest Paid on School Loans (AOC, Hope, Lifetime Credit, Tuition Deduction)

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Investment Deductions

When the Kids move away and you have NO Exemptions to deduct - Buy Tax Credits, They directly offset Tax Liability.
Ask me about how to purchase them. Also ask me about other ways to save taxes via investments. Such as: Maxing out your 401K or 403B at work, Max out IRA and ROTH IRA, Education IRA, Education 529 Plan, etc.

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This is Not a Complete List!
A good rule of thumb is: If you were reimbursd, it is NOT deductible!!!!

Please note as to all expenses listed here, please verify with the current year IRS publications as to the deductibility of these Personal, Home, and Business expenses.