List of Tax Deductions for 2008
Its one of the constants: taxes. Where the other is death, most have a hard time choosing. I found myself at a time agreeing with most that these are the worst times of the year. But now I have a slightly different outlook. I look at this time as an opportunity to lessen the harshness and try to optimize my money back.
I wanted to think of a good way to try and bring a better light to others about this confusing a complicated process. The best way I knew, for now, was to gather a list of items that people may or may not know about with respect to getting the most out of what is on the chopping block from their wallets, due for Uncle Sam.
1. Medical mileage - You surely didn’t forget to add up your medical expenses, but what about mileage to and from appointments? You can deduct $0.20 per mile for medical trips, and you can also include parking fees and tolls (PDF: 2007 Publication 502).
2. Educator expenses - Are you a teacher? You can deduct up to $250 of out-of-pocket expenses for books and supplies. And you don’t even have to itemize!! Just put the amount on line 23 of Form 1040 (Tax Topic 458).
3. Student loan interest - Most young adults have at least a little school debt. At least you can deduct the interest you pay on those loans. If you paid more than $600 in interest during the year, your lender should send you Form 1098-E, detailing your interest. This is another cool deduction that doesn’t require itemizing (Tax Topic 456).
4. Donations of goods - Did you give some old household items to Goodwill? Be sure to get a receipt, and you can deduct the value of those items. There’s even a cool online program (It’s Deductible) that helps track and value those donations (Tax Topic 506).
5. Jury pay - Nobody likes jury duty, but at least you can deduct the pay! If your employer paid your full salary while you served AND you turned over the jury duty pay to your employer, you’re eligible to deduct it. You can even claim this deduction on Form 1040A!
6. Health insurance premiums - Everyone can add health insurance premiums to their medical expenses deduction. And if you’re self-employed, you can deduct 100% of these premiums without itemizing! You have to love easy deductions like that!
7. Moving expenses - Did you move more than 50 miles for a full-time job? Deduct it! This includes self-employment, as long as you fulfill the “time” test (working enough hours each week) (PDF: Publication 521).
8. Higher-education - Did you pay college expenses this year? If you earned less than $65,000, you can deduct up to $4,000 of those expenses above-the-line (Publication 970).
9. Job hunting costs - If you’re looking for work in the same field in which you’re currently employed, deduct your expenses. There are some nuances here, but it’s definitely worth accounting for (Publication 529).
10. Tax prep fees - These are typically deductible in the year you pay them. For your 2007 tax return, you can deduct your 2006 tax preparation fees. This includes the cost of your software, accountant, and even e-filing.
11. Accounting fees for tax preparation services and IRS audits
12. Alcoholism and drug abuse treatment
13. Amortization of premium on taxable bonds
14. Appraisal fees for charitable donations or casualty losses
15. Appreciation on property donated to a charity
16. Casualty or theft losses
17. Cellular telephones, be sure to read this
18. Cleaning and laundering services when traveling
19. Commissions and closing costs on sale of property
20. Contact lenses, eyeglasses, and hearing devices
21. Contraceptives, if bought with a prescription
22. Costs associated with looking for a new job in your present occupation, including fees for résumé preparation and employment of outplacement angencies
23. Depreciation of home computers
24. Dues to labor unions
25. Education expenses to the extent required by law or your employer or needed to maintain or improve your skills
26. Employee contributions to a state disability fund
27. Employee’s moving expenses
28. Federal state tax on income with respect to a decedent
29. Fees for a safe-deposit box to hold investments (e. g., stock certificate)
30. Fees paid for childbirth preparation classes if instruction relates to obstetrical care
31. 50% of self-employment tax
32. Foreign taxes paid
33. Foster child care expenditures
34. Gambling losses to the extent of gambling winnings
35. Hospital services fees (laboratory work, therapy, nursing services, and surgery)
36. Impairment-related work expenses for a disabled individual
37. Improvements to your home
38. Investment advisory fees
39. IRA trustee’s administrative fees billed separately
40. Lead paint removal
41. Legal fees incurred in connection with obtaining or collecting alimony
42. Long-term care insurance premiums
43. Margin account interest expense
44. Medical transportation, including standard mileage deduction and lodging expenses incurred for medical reasons while away from home
45. Mortgage prepayment penalties and late fees
46. Out-of-pocket expenses relating to charitable activities, including the standard mileage deduction
47. Health insurance premiums is self-employed
48. Penalty on early withdrawal on savings
49. Personal liability insurance for wrongful acts as an employee
50. Points on a home mortgage and certain refinancings
51. Protective clothing required at work
52. Real estate taxes associated with the purchase or sale of property
53. Seller-paid points on th epurchase of a home
54. Special equipment for the disabled
55. Special schools and separately stated fees for medical care included in tuition
56. State personal property taxes on cars and boats
57. Subscriptions to professional journals
58. Theft or embezzlement losses
59. Trade or business tools with life of 1 year or less
60. Worthless stock or securities
I want to be clear about something, this is not an exhausitive list nor is it a checklist for you to claim. It is simply a place to get started while you think about what deductions you might be able to take for last year. The standard deducitons for 2008 have gone up:
- Married, filing jointly, or qualifying widow or widower: $10,900
- Head of household: $8,000
- Single: $5,450
- Married, filing seperately: $5,450
Y ou should also caution against scams, see what others are saying, and do your own homework. Talk to a tax pro, it will be well worth it. $
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Comments
Great list!
I’m self-employed and have done our taxes on Turbo Tax for as long as I can remember, but every year, I learn about a new deduction we can take.
Many of these seem like nickle and dime items, but collectively, they can have a huge impact on your tax bill…or your tax return.
[...] List of Tax Deductions for 2008 | Milk Your Money Health insurance premiums – Everyone can add health insurance premiums to their medical expenses deduction. [...]
Great post – I’m going to definitely take some of these into consideration when I file my return this year.
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