55 COMMONLY OMITTED TAX DEDUCTIONS

The following list contains 55 deductions that are often overlooked. The list is meant to serve as a quick-reference checklist. It's neither all-inclusive nor are all the items applicable to everyone. Your specific circumstances will determine which deductions you qualify for.

MEDICAL

1. Contact lenses

2. Insurance for contact lens
3. Hearing aids
4. Contraceptives, if by prescription
5. Alcoholism and drug-abuse treatment
6. Lead paint removal
7. Orthopedic shoes
8. Special schools for a handicapped child
9. Special equipment for the disabled or handicapped
10. Self-employed persons can deduct 30% of health insurance premiums paid for themselves and their dependents
11. Travel mileage related to medical treatment (ten cents per mile)
12. Special foods prescribed by your doctor and taken in addition to your normal diet
13. Lodging while away from home under medical care
14. Prescription drugs

TAXES:

15. Personal property taxes on automobiles

16. Self employed persons can deduct half of self employment tax
17. Foreign taxes

CHARITY:

18. Out-of-pocket expenses relating to charitable activities

19. Standard deduction of 12 cents a mile for use of your auto in charitable activities
20. Parking and tolls when using your auto in charitable activities
21. Fair market value of items given to charities
22. Appraisal fees paid to value property donated to charities

INVESTMENTS:

23. Penalty on early withdrawal of savings

24. Safe deposit boxes
25. IRA trustee's administrative fees if billed separately
26. Failing to add the amount of reinvested funds (e.g., dividends) to your cost when computing gain or loss on the sale of mutual funds
27. Worthless stock or securities

CASUALTY:

28. Theft or embezzlement losses

29. Casualty losses

WORK-RELATED:

30. Business tools

31. Dues to labor unions
32. Employment agency fees
33. Uniform and work clothes
34. Newspapers and trade publications that you purchase to check employment ads
35. Education that maintains and improves your skills
36. Employee contributions to state disability funds
37. Business gifts to a maximum of $25 per recipient
38. Cellular telephones
39. Passport fees for business travel
40. Cleaning and laundry bills when on a business trip
41. Resume preparation costs in connection with a search for a new job in your present occupation
42. Travel expenses (local and out of town) in connection with a job search for a new job in your present occupation ... even if you don't get the job

MISCELLANEOUS:

43. Mortgage prepayment penalties

44. Gambling losses to the extent of gambling winnings
45. Points or origination fees on a mortgage to purchase a residence
46. Accounting fees for tax preparation
47. Fees paid to financial planners
48. Depreciation on home computers to the extent used for business or investments

CARRY - OVER ITEMS: these are items weren't deductible in prior years because of limitations on the amounts permitted to be deducted in that particular year but that could be carried ahead and deducted in subsequent years:

49. Capital losses carry forward

50. Investment interest
51. Charitable contributions
52. Equipment expensing election
53. Alternative minimum tax credit
54. Business operating losses
55. Passive losses