DeFreitas & Minsky Accounting Blog

The 40 Simple Tax Deductions You Probably Don’t Know About

Posted by daiken on Feb 19, 2015 10:20:17 AM

simple tax deductions

Everybody seems to know what tax deductions are but, if you were to ask them what deductions they qualify you’ll more than likely be met with silence. With the constant shift of government legislation year after year it can be difficult to define what you qualify for (unless you’ve been following that legislation throughout the year and that can be time-consuming). We’re guessing you’re already busy enough as is so, we’ve put together a list of the 40 simple tax deductions you could qualify for this year. Simple tax deductions that, we hope, will help save you quite a lot of money.

40 Simple Tax Deductions 

Take advantage of these simple tax deductions and save money this tax season.

Business Expenses

  • Baggage fees (if you’re self-employed and traveling for business)
  • Bonus depreciation for equipment
  • Cell phones (designated business only)
  • Cleaning services used while traveling for business
  • Employment agency fees
  • Expenses for job-seeking
  • Home office expenses (if you work from home)
  • Job-related professional journals and newspapers
  • Military Reservist travel expenses
  • Required uniforms
  • Union dues

Charitable Donations and Expenses

  • Cost of meals, accommodations, public transportations – if you pay for them out of pocket
  • Donated goods
  • Mileage incurred performing charitable activities

Educational Loans and Credits

  • Hope and Lifetime Learning credits (a type of federal financial aid for college tuition that gives tax credit instead of tuition payment)
  • Student loan interest (even if it’s being paid by Mom and Dad)

Finances and Investments

  • Accounting or legal fees involved with taxes
  • Alimony
  • Cost of safe deposit box (investments or business)
  • Investment-related expenses (i.e. reinvested dividends)
  • Penalty on early withdrawal of savings
  • Refinancing points on a mortgage
  • State sales tax deduction (check out the IRS Sales Tax Deduction calculator)

Home Improvements and Moving Expenses

  • Casualty and theft losses
  • Clean fuel credit (if you buy a hybrid or electric car)
  • Commissions for the sale of your home
  • Home services needed for a qualifying dependent during work hours
  • Jury duty pay
  • Moving expenses
  • Personal property taxes on cars, boats, etc.
  • Tax credit for sustainable home improvements (i.e wind turbines, solar panels, etc.)

Medical Expenses

  • Care provided for disabled children or spouse
  • Crutches, orthopedic shoes, hearing aids, eyeglasses, contact lenses
  • Drug abuse programs
  • Equipment for disabled individuals
  • Health insurance premiums (for self-employed people, 100% deductible from gross income)
  • Nurses’ fees
  • Nursing home medical expenses
  • Transportation expenses for tips to medical facilities/doctors’ offices
  • Weight-loss programs prescribed by a doctor

Hopefully our 40 simple tax deductions can help you save this tax season. And, if you noticed that you qualified for quite a few tax deductions we would like to wish you congratulations! Just be sure to check with your accountant to make sure that you do indeed qualify. For any further questions about simple tax deductions (either for individual tax planning or business tax planning and preparation) please feel free to give us a call at 516.746.6322. We look forward to hearing from you!

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Topics: Business Accounting, Tax Laws, Financial Planning

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