1. Medical mileage deduction for 2008 is $.19 and it was $.20 per mile for 2007. The number of miles from home to doctor appointments and hospital appointments need to be included. When you start adding these up it is amazing how much it totals to.
2. Interest paid on a 2nd mortgage is deductible as long as the residence has a function kitchen and bathroom. Have you ever considered your motor home in this hidden tax deductible item?
3. Charitable deductions are made and often forgotten about. Sometime we just cannot remember the box of cookies we bought from our neighbor's daughter who is with girls scouts as well as many other donations throughout the year. Add them upyou will not be sorry.
4. If you had to move during the year for work then do not forget the moving expenses. You must meet certain tests so be sure to discuss this with your tax advisor. Tax deductible items include $.20 per mile, actual out of pocket expenses for oil and gas. Also include expenses for storage of household goods and lodging expenses.
5. Alimony is deductible by the payer and reportable by the recipient. Do not pass this up as this can take a little pain away from the amount being paid each month to the ex. If you are in a 28% tax bracket and the alimony amount is $1000.00 per month then the annual tax reduction is $3,360.
6. Interest paid on student loans is deductible. Many times after graduation you take a new job and your address changes. The year end statement showing the amount of interest paid for the calendar year gets misplaced. Therefore, if you paid student loan interest or have a child that did do not pass this tax deductible item up.
7. State income taxes that are withheld on your W-2 are deductible. In addition, do not forget the amount of taxes paid to your state for a prior year filing.
8. Personal loans you have made to family and friends who have not repaid you are deductible. The IRS does not require you to take these people to court to be able to take this deduction. If you have capital gains and are looking for a way to off set them this deduction can be golden.
9. If you are self employed there are countless deductions but for the purpose of this article do not be afraid to take a loss on line 12 of your 1040 resulting from your Schedule C. If I did not make any income from my self employed venture can I take a loss? Yes absolutely.
10. When a family member moves into another home you own often you will forget to report it. The incentive to reporting is that this is a tax deductible item. You can usually create a loss to be reported on your 1040 when these deductions are properly accounted for.
