This is the ninth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the second half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!
HEALTH, CHILD CARE, AND CHARITY DEDUCTIONS
Deduction of Medicare Premiums for the Self-Employed
Self-employed individuals who continue to operate their own businesses after qualifying for Medicare can deduct their Medicare Part B and Medicare Part D premiums, plus the cost of supplemental Medicare policies or the cost of a Medicare Advantage plan, regardless of whether or not he or she itemizes.
Child-Care Credit
A credit is available for the costs of care for a qualifying individual to work (or even look for work).
Out-of-Pocket Charitable Deductions
Out-of-pocket costs incurred while working on behalf of a charitable organization are deductible.
LEGAL INCOME & FEES AS DEDUCTIONS
Jury pay paid to employer
Because the IRS requires that jury fees must be reported as taxable income, taxpayers may deduct this amount remitted to an employer, typically as a write-off on line 36 of Form 1040.
Legal fees paid to secure alimony
Legal fees and court costs for a divorce are nondeductible personal expenses, nonetheless, some attorney fees may be deductible.
COLLEGE TUITION & LOAN DEDUCTIONS
The American Opportunity Credit
The American Opportunity Credit basically replaced the Hope Credit. It is available for all four years of college, rather than just the first two.
The Lifetime Learning Credit
Taxpayers may claim the Lifetime Learning credit for any number of years and is available for all students, even parents.
Student-Loan Interest
If the child is no longer claimed as a dependent, he or she can annually deduct up to $2,500 of student-loan interest paid by his or her parents, who themselves may not claim this interest deduction because they are not liable for the debt.
BUSINESS EXPENSES AS DEDUCTIONS
Bonus Depreciation
When it comes to acquiring new equipment (and depreciating it) for an enterprise, business owners must regularly stay updated on all current, pertinent tax rules and regulations, which constantly change.
Supercharged Expensing
Supercharged “expensing” allows taxpayers to write off the full cost of qualifying assets in the year they were placed into service.
The tax professionals at the Thorgood Law Firm can help ensure that all taxpayers take advantage of any and all deductions that may apply to them. If you live in the New York or the Tri-State area and have any questions about possible tax deductions, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.
