What Can I Deduct On My Taxes To Maximize My Refund?

By: Zach Allred


What can I deduct on my taxes is a question I am often asked as a tax accountant. In the 18 years I have been preparing tax returns for individuals and businesses I have tried to answer this question numerous times. Following is a list of deductions that in my opinion satisfy the widest range of taxpayers.

Did you change jobs last year? If you satisfy certain tests you are able to deduct the expenses relating to the move. These deductions include storage of personal house hold items, house hunting, transportation and lodging expenses.

Everyone in America should have a small business on the side so they can take advantage of numerous tax deductions. If you have a profit objective you can deduct your internet, computer expenses, home office, mileage, medical expenses if properly structured, and cell phone just to name a few. Talk to your tax advisor about these deductions and make them aware so they can help you with documentation and deductibility.

Worthless debts arising from loans to friends and family are deductible in the year they become worthless. Have you helped your son or daughter and you know they will never be able to repay you? Did you help someone out of a jam and even though they promise to repay you you know they never will? Consult with your tax advisor about this deduction and you will not be sorry.

Mileage is deductible if you are self employed but did you know you can also deduct miles driven to a from doctor and hospital visits? Also miles driven for charities such as your church are deductible. The rates change each year but for 2007 the medical rate is $.20 per mile and $.14 per mile for charity. This may seem like peanuts but start adding these miles up and you will be amazed at how much you could have been deducting all these years.

If a school teacher ever asks me what can I deduct on my taxes one of the first things I think of is the educator expenses on line 23 of the 1040(2007). This deduction is often missed so if you or someone you know is a school teacher this is a worthwhile item.

Have you heard of the "Additional child tax credit?" Most people know of the child credit as it gets quite a bit of media attention but the additional child credit in many cases is more than the child credit. Make sure you or your tax preparer is claiming this one.

Often times I will prepare tax returns for clients who receive a K-1 from an S-Corporation or Partnership. Like other self employed individuals they are entitled to deduct expenses that they have not been reimbursed for. Most tax preparers will try to take the expenses on Schedule A as an itemized deduction. But there is another far better way. On Schedule E as an unreimbursed expense. Consult your tax advisor to make sure you are not missing this one.

When you work for someone else you may be incurring expenses that are deductible if your employer is not reimbursing you. Unreimbursed employee expenses is the category these fall under. Consult your tax advisor to make sure you are taking full advantage of these deductions.

You may have your question "What can I deduct on my taxes?" answered in the previous paragraphs but if not or you have other tax related questions you are welcome to contact me through email. Either I or a member of my staff will respond. Simply follow the links at the bottom of this page to my website where you can find my email address.

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Check this site for several other tax deduction ideas in relation to the query what can I deduct on my taxes? Be sure to also check this site for several ideas in relation to starting you own home based business.

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