10 Tax Deductions For Individuals in 2009, 2010

 

As you prepare to file your taxes, you’re likely thinking about how you can keep that final tax bite as small as possible. Take a minute to take stock, mentally and through your records, to be sure you haven’t missed deductions that have the potential to reduce that bite significantly.

Below are ten I have found to be most worthy of taking a few extra minutes to make sure you’re getting all you can from them

1. Car and Truck Expenses

There are so many costs associated with vehicles and the ways you use them, you don’t want to overlook the benefits that are out there for the taking. Mileage for business, charitable purpose, moving from one home to another, etc., and/or lease costs or depreciation, interest on loans, maintenance, and in some cases, fuel costs are all available to consider.

2. Travel

Include any travel costs: hotels, airfare, meals, tips, cabs, etc. for any ordinary and necessary trip.

3. Early Withdrawal Penalties

If you incurred penalties for early withdrawal at a bank, you can deduct that penalty.

4. Educator Expenses

Professional educators are allowed to deduct expenses for teaching courses. This is a wide and generous deduction if you are an educator.

5. Moving Expenses

While the rules can be tricky, if you’re moving for work related reasons, you’re entitled to a deduction for your expenses, including mileage, storage, overnight stays, etc.

6. Health Savings Account Deduction

A newer deduction in the code, this is an alternative to traditional health insurance and has long term tax benefits if you use them.

7. Alimony Paid

Court ordered spousal support, “alimony”, is fully deductible. Child support is not.

8. Job Search Expenses

This deduction is easily forgotten, but in a weak economy it is also very important. Don’t forget costs of printing, copying, travel, phone usage, etc. as you calculate this deduction.

9. Student Loan Interest Deduction

An easily overlooked deduction that doesn’t apply to everyone, but is very valuable to those who are still owe on student loans.

10. Self Employment Taxes

For business owners, this is often a large deduction that helps offset the burden of all the taxes you are forced to pay as a business owner.

 

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