EY Tax Guide 2014

50 commonly overlooked deductions

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The following list will serve as a reminder of some deductions you can easily overlook when you prepare your return. It is not intended to be all-inclusive, nor applicable to everyone. The circumstances of your situation will determine whether you qualify.

1

Accounting fees for tax preparation services and IRS audits (chapter 29)

2

Alcoholism and drug abuse treatment (chapter 22)

3

Amortization of premium on taxable bonds (chapter 29)

4

Appraisal fees for charitable donations or casualty losses (chapters 25, 26)

5

Appreciation on property donated to a charity (chapter 25)

6

Casualty or theft losses (chapter 26)

7

Cellular telephones (chapter 29)

8

Cleaning and laundering services when traveling (chapter 27)

9

Commissions and closing costs on sale of property (chapter 14)

10

Contact lenses, eyeglasses and hearing devices (chapter 22)

11

Contraceptives, if bought with a prescription (chapter 22)

12

Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies (chapter 29)

13

Depreciation of home computers (chapter 29)

14

Dues to labor unions (chapter 29)

15

Education expenses to the extent required by law or your employer or needed to maintain or improve your skills (chapters 28 and 29)

16

Employee contributions to a state disability fund (chapter 23)

17

Employee's moving expenses (chapter 20)

18

Federal estate tax on income with respect to a decedent (chapter 29)

19

Fees for a safe-deposit box to hold investments (e.g., stock certificate) (chapter 29)

20

Fees paid for childbirth preparation classes if instruction relates to obstetrical care (chapter 22)

21

Fifty percent of self-employment tax (chapter 38)

22

Foreign taxes paid (chapter 23)

23

Foster child care expenditures (chapter 25)

24

Gambling losses to the extent of gambling winnings (chapter 29)

25

Hospital services fees (laboratory work, therapy, nursing services and surgery) (chapter 22)

26

Impairment-related work expenses for a disabled individual (chapter 29)

27

Improvements to your home (chapter 15)

28

Investment advisory fees (chapter 29)

29

IRA trustee's administrative fees billed separately (chapter 29)

30

Lead paint removal (chapter 22)

31

Legal fees incurred in connection with obtaining or collecting alimony (chapter 29)

32

Long-term care insurance premiums (chapter 22)

33

Margin account interest expense (chapter 24)

34

Medical transportation, including standard mileage deduction (chapter 22) and lodging expenses incurred for medical reasons while away from home (chapter 22)

35

Mortgage prepayment penalties and late fees (chapter 24)

36

Out-of-pocket expenses relating to charitable activities, including the standard mileage deduction (chapter 25)

37

Health insurance premiums if self-employed (chapter 38)

38

Penalty on early withdrawal of savings (chapter 7)

39

Personal liability insurance for wrongful acts as an employee (chapter 29)

40

Points on a home mortgage and certain refinancings (chapter 24)

41

Protective clothing required at work (chapter 29)

42

Real estate taxes associated with the purchase or sale of property (chapter 23)

43

Seller-paid points on the purchase of a home (chapter 24)

44

Special equipment for the disabled (chapter 22)

45

Special schools and separately stated fees for medical care included in tuition (chapter 22)

46

State personal property taxes on cars and boats (chapter 23)

47

Subscriptions to professional journals (chapter 29)

48

Theft or embezzlement losses (chapter 26)

49

Trade or business tools with life of one year or less (chapter 29)

50

Worthless stock or securities (chapter 16)