Individual Income Tax Deductions
- Mortgage interest on our primary residence and a second residence (such as a vacation home)
- Real estate taxes on your residence, other residences, and other real property
- Points paid on a loan to purchase a new home (even if they are "paid by the seller")
- Pro-rated deduction for points paid on a refinanced mortgage
- Remaining balance of pro-rated points on previous mortgage when you refinance or pay it off early
- Cost of home improvements done for medical purposes in excess of the amount by which the improvements increase the value of your house1
- Moving expenses (if the move is job-related and meets certain qualifications)2
- Union and professional dues2
- Continuing professional education expenses2
- Job-related education expenses2
- Job hunting expenses2
- Job counseling fees2
- Employment agency fees2
- Resume preparation fees2
- Small tools used in your job2
- Uniforms or special work clothing2
- Other unreimbursed employee business expenses including travel, meals, and entertainment2
- Health insurance premiums1
- Fees for investment advice2
- Subscriptions for investment-related publications2
- Capital losses (stocks and other capital assets sold for less than your basis)3
- Loss on "worthless" investments
- Suspended passive losses
- Interest expense in certain circumstances
- Penalty for early withdrawal of savings
- Contribution to IRA (traditional IRA)
- IRA trustee fees if paid with "non-IRA" money2
- Amortization of premium paid when purchasing taxable bonds at more than face value
- Fees for safe deposit boxes2
- Alimony paid
- Additional standard deduction if you are 65 years old or older OR if you are blind (applies to both taxpayer and spouse)
- Student loan interest
- College tuition
- Unreimbursed medical expenses1
- Mileage to obtain medical care at the rate of $.15 per mile (for miles driven between 1/1/05 and 8/31/05) and $.22 per mile (for miles driven between 9/1/05 and 12/31/05)1
- Lodging on trips for medical care1
- Prescription eyeglasses, contacts, and vision insurance premiums1
- Chiropractic treatments1
- Prescribed weight loss treatments1
- False teeth and other dental expenses1
- Hearing aids1
- Braces, crutches, wheelchairs, and similar devices1
- Drug or alcohol abuse treatment1
- Prescription drugs or programs to stop smoking1
- Cost of nursing home care or in home care if medical treatment is the principal reason for the care1
- Cash contributions
- Fair market value of property contributed (unless it is "ordinary income" property)
- Mileage for driving related to charitable work at the rate of $.14 per mile
- Out of pocket expenses of charitable work
- Fees for tax planning and preparation
- Personal property taxes
- Casualty and theft losses3
- State and local income taxes
- Sales taxes
- Gambling losses (to the extent of gambling winnings)2
1 These expenses are reduced by 7.5% of your adjusted gross income (AGI) in computing the deductible amount.
2 These expenses are reduced by 2% of your adjusted gross income (AGI) in computing the deductible amount.
3 These losses are subject to a $100 + 10% of adjusted gross income (AGI) floor in computing the deductible amount.
Keep in mind that the ideas presented are, by necessity, of a general nature. We would be happy to discuss how these, or other ideas, apply to your specific situation. Click here to send us an email.
To Your Financial Health
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