Five Common Missed Tax Deductions

Well, we're at the one-month point and millions of people haven't even started thinking about filing their taxes yet. If you're one of them, this post is for you. ;-)

Here's an article from Money that lists five common missed tax deductions with my short explanation of their meaning in parentheses:

1. Stay ahead of the game (be sure you're aware of last-minute tax changes).

2. Got hybrid fever? Get on the list now. (You can get tax credits if you by a hybrid vehicle.)

3. Be specific. (Charitable deductions are "worth more" based on when you gave them.)

4. Add up your medical costs (you may have a deduction).

5. Claim your parents (if you support them and their income is very low).

My taxes are close to being done (my CPA has had them for a few weeks). I'm sure she's got #1 and #3 covered -- the only two on this list that apply to me this year.

If you still have your taxes to file, here are some of my favorite tax-related posts that may help you out this year:

• Six Don't-Miss Tax Breaks
• Need Help this Tax Season?
• Eight Ways to Avoid an Audit
• Tax Law Changes You'll Need to Consider for 2005 Income Tax Returns
• Top 10 New Year Tax Resolutions
• The Fastest Tax Refund Possible
• 3 Keys to Choosing the Best Tax Pro
• Five Common Tax Filing Mistakes
• Why I Use a CPA to Do My Taxes
• Tax Savvy Ways to Save for an Education
• The Basics of Tax Record Keeping: What Should You Keep?
• As Audits Increase, Taxpayers Should Seek Professional Assistance to Avoid Trouble with the IRS

FMF recommends: H&R Block.  Do it yourself or have us do it.  It's never been easier.

Comments

[Andrea]

If I took money from my 401K to buy out my ex (for the house) can I deduct the amount I paid him from anywhere in my taxes? Maybe reduce the penalty or something? Any other tax information related to divorce or property seetlement that can help with my taxes would be great.

Thanks