
John J. FureyJanuary 23, 2015
Tax filing season for calendar 2014 opened on January 20, 2015. Here is a list of tax deductions and credits that are often missed by taxpayers because they were not aware that the expenses qualified for a tax deduction or credit.
Medical Related
(Total expenses must exceed 10% (7.5% if age 65+) of Adjusted Gross Income to be deductible)
1. Alcoholism and drug abuse treatment
2. Contact lenses, eyeglasses and hearing aids
3. Long-term care insurance premiums
4. Medical transportation costs, including the standard mileage rate of 23 ½ cents
5. Lodging expenses incurred for medical reasons
Employment Related
6. Costs of looking for a new job in your present occupation
7. IRA deduction for contributions made after the end of 2014 but before April 15, 2015
8. Employee’s moving expenses
9. Education that is work related
10. Unreimbursed employee expenses, such as license fees, business subscriptions
11. Health care insurance premiums and 50% of self-employment tax for self-employed
12.Medicare premiums paid by the self-employed
13. Simplified Employee Pension (SEP) IRAs for self-employed
Charity Related
14. Fair market value of property donated to charity
15. Charitable transportation costs, including the standard mileage rate of 14 cents
16. Cost of uniforms not suitable for everyday use
17. Qualified Charitable Distributions (QCDs) from IRAs for those over 70 ½
Taxes
18. Real estate taxes associated with the sale or purchase of property
19. State personal property taxes on cars and boats
20. State sales tax or income tax
Investment Related
21. Interest paid on a margin account if the margin loan is used for investments
22. Amortization of the premium on taxable bonds
23. Deduction for worthless stock or securities
24. Penalty on early withdrawal of savings
Education Related
25. Student loan interest deduction*
26. American Opportunity Tax Credit for college*
27. Lifetime Learning Credit*
28. Deduction on PA tax return for contribution to 529 Plans
Other
29. Fees charged for tax preparation services and dealing with IRS audits
30. Casualty and theft losses
31. Military Reservists’ travel expenses
32. Child care credit*
33. Child tax credit*
34. Legal fees paid to secure alimony
35. Gambling losses to the extent of winnings
If you plan to take any of the above deductions or credits, please remember to keep good contemporaneous records to support them. If you have any questions related to any of these items, please do not hesitate to contact our office (610-651-2777).
*These credits are only available if your modified adjusted gross income is below certain thresholds.