If you itemize deductions on your tax return, every additional deduction you find will save you money. In the past, higher-income taxpayers had their itemized deductions limited. Effective for 2010, 2011, and 2012 tax returns, there is no income-based reduction in total itemized deductions. That may give higher-income taxpayers another reason to track their deductions carefully.
Here’s a sampling of often-missed deductions.
* Disaster losses not reimbursed by insurance.
* Job-hunting travel and telephone expenses.
* Employment agency and job counseling fees.
* Costs for resume preparation.
* Union or professional association dues.
* Specialized work clothing or small tools used at work.
* Points paid by you on a new home loan.
* Home mortgage points paid by a seller on your behalf.
* Points paid on refinancing your home mortgage (deductible pro rata over the life of the loan).
* Remaining undeducted points on a prior refinancing when you refinance again.
* Your actual expenses or 14¢ a mile for driving in doing charitable work.
* Gambling losses, but only to the extent of your winnings.
* Fees paid for the preparation of your tax return.
For assistance in identifying all the deductions to which you are entitled, contact Simons Bitzer & Associates at (317) 782-3070.