The Most Overlooked Tax Deductions, Part 1

Many taxpayers overlook the long list of deductions that they may take when completing and filing their tax returns. The IRS has estimated that millions of taxpayers overpay their taxes each year mainly because they fail to avail themselves of all of the possible deductions. Here is the first part of our multi-part blog on the most overlooked tax deductions:

JOB & MOVING DEDUCTIONS

Job Search Expenses

As long as the position of employment sought is in the same line of work as a current or most recent job, job search expenses may be deducted as miscellaneous expenses if itemized. Qualifying expenses can be written off even if no job is found. But such expenses may be deducted only to the extent that total miscellaneous expenses exceed 2% of adjusted gross income.  Job-hunting expenses incurred while looking for a first job don’t qualify. Deductible costs include, but aren’t limited to:

  • Transportation expenses incurred, including 57.5 cents a mile for use of a personal motor vehicle, parking and tolls;
  • Food and lodging expenses;
  • Cab fares;
  • Employment agency fees;
  • Photocopying, postage, and advertising costs.

Moving Expenses for a First Job

Although job-hunting expenses are not deductible when looking for your first job, moving expenses to get to that job are. And you get this write-off even if you don’t itemize. To qualify for the deduction, your first job must be at least 50 miles away from your old home. If you qualify, you can deduct the cost of getting yourself and your household goods to the new area. If you drove your own car on a 2015 move, deduct 23 cents a mile, plus what you paid for parking and tolls. For 2016 it decreases to 19 cents

Military Reservists’ Travel Expenses

Members of the National Guard or military reserve may write off the cost of travel to drills or meetings. To qualify, you must travel more than 100 miles from home and be away from home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your meals, plus an allowance for driving your own car to get to and from drills. For 2015 travel, the rate is 57.5 cents a mile, plus what you paid for parking fees and tolls. You may claim this deduction even if you use the standard deduction rather than itemizing. For 2016, it decreases to 54 cents per mile.

If you live in the New York or the Tri-State area and have any questions about any possible tax deductions, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.The Most Overlooked Tax Deductions, Part 1

Leave a Reply

Your email address will not be published. Required fields are marked *

Testimonials

Categories