Many taxpayers just assume that they are not eligible to itemize deductions on their tax return, but they may not realize everything that is deductible. The Schedule A is a ripe area for common missed tax deductions. Commonly overlooked itemized deductions include:
Job Search Expenses: (Miscellaneous Itemized Deduction) Include mileage, resume printing, expenses to travel to/from interviews, other direct costs of searching for a job. This could be a large deduction for many taxpayers this year.
Tools, Uniforms, Union Dues, Safety Equipment: (Miscellaneous Itemized Deduction) Includes most items purchased for your job that are required by your employer but not reimbursed.
Mileage Reimbursement Difference: (Miscellaneous Itemized Deduction) If your employer reimburses you for your business mileage, but the reimbursement rate is lower than the IRS standard rate, then you may be entitled to deduct the difference.
Financial management and planning expenses: (Miscellaneous Itemized Deduction) If you had an attorney prepare a trust, paid a financial planner, paid to have your tax return prepared (including the cost of tax preparation software for self-preparers), subscribed to an investment newsletter, paid a tax attorney for advice, or incurred other costs to manage your finances, then these may be deductible.
Real Property taxes: Of course, this includes taxes paid on your residence, but it also includes taxes paid on other properties, such as a second residence, a vacation property, a vacant lot, or any other real estate.
Time share owners: Check your yearly maintenance fee. If real property taxes are listed as a separate line, then this should be deductible.
If you sold a home in 2010: Check your settlement statement. The real property taxes you paid at closing should be deductible.
Medical mileage: (Medical Deduction) - mileage to/from doctor appointments, treatments, even the miles to/from the drugstore to pick up your prescriptions.
Charitable mileage: Did you make deliveries or pickups for your church? Boy scouts? Meals on Wheels? Any other charitable organization? Mileage for a charitable organization should be deductible in the Gifts to Charity section.
Mortgage Insurance Premiums: If you purchased or refinanced a house in 2007 or later, you may be able to deduct the mortgage insurance premiums that you paid. Income limits and some other restrictions apply.
Sales tax deduction: Be sure to compare the amount of your state and local income tax deduction to the sales tax tables. You are entitled to take whichever one gives you the largest deduction.
Prior Year State Tax: If you owed state income taxes when you filed last year, and you paid the balance owing in 2010, then you should be able to deduct it as an itemized deduction.
Continue reading on page two for more information about common missed tax deductions.
