This is the eighth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the first half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!
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.
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 deductible.
Military Reservists’ Travel Expenses
Members of the National Guard or military reserve may write off the cost of travel to drills or meetings.
INVESTMENT RELATED DEDUCTIONS
Amortization of Bond Premiums
The IRS offers assistance for taxpayers who purchase taxable bonds for more than face value. Taxpayers have options in treating the premium.
HOME-RELATED DEDUCTIONS
Credits for Energy-Saving Home Improvements
A tax credit no longer exists which encourages homeowners to save energy by making improvements such as the installation of insulation and storm windows. However, qualified residential alternative energy equipment, including geothermal heat pumps and properties involving solar electric, solar water heating, fuel cell, and small wind-energy may reduce taxes.
Mortgage Refinancing Points
Points paid to obtain a mortgage are outright deductible. When refinancing, the points must be deducted over the life of the new loan.
PAYMENT OF TAXES AS DEDUCTIONS
Estate tax on income in respect of a decedent
Any taxpayer that inherits an IRA from another individual whose estate was sufficiently large enough to be subject to the federal estate tax receives an income-tax deduction for the amount of estate tax paid on the IRA assets received.
State tax paid last tax return/State sales taxes
Taxpayers that file Form 1040 and itemize deductions on Schedule A have the option of claiming either state and local income taxes or state and local sales taxes, but not both.
Social Security taxes
This only applies to self-employed individuals that pay the full 15.3% social security tax on their own, rather than splitting it evenly with an employer.
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.
