13 Most Overlooked Tax Deductions

Kiplinger.com had a great article about the 13 most overlooked tax deductions yesterday.  Here’s a recap:

1. Missing or incorrect social security number
2. State sales tax – this deduction was extended by the latest tax legislation, but it was left off the tax forms, so enter on line 5 of schedule A
3. $250 educator’s expenses – also not on the forms, so enter on line 23 of 1040
4. Tuition and fees deduction – also not on the forms (are any deductions listed on the forms this year!?!), enter on line 35 of 1040
5. Student loan interest paid by parents (used to be only the student could take this deduction)
6. Out of pocket charitable contributions, including expenses to carry out charitable activities and miles driven
7. Moving expenses, if related to job change
8. Military reservist travel expenses
9. Child care credit – this is for child care expenses, not the child tax credit
10. State tax you paid on last year’s tax return
11. Refinancing points – points paid when you purchase your home are deductible in the year of purchase; points paid at refinancing must be amortized over the life of the loan
12. Reinvested dividends – this is not a deduction, but rather these should be subtracted from the proceeds of the stock or mutual fund when you sell it, because reinvested dividends are part of your cost basis.
13. Jury pay paid to employer – if your employer continues to pay your salary while you are on jury duty, they may request that you turn over your jury pay to the company.  This is deductible on line 34 of 1040.

To read the full article, click here.

And who says you don’t need a tax professional?  If I were not a CPA, I would be very wary about preparing my own tax return after reading this article!