Top 50 Most Overlooked Deductions

Charity

• Property donated to a recognized charity
• Cash contributions to a recognized charity
• Charitable contributions through payroll deduction or social media
• Fourteen cents per mile for miles driven while doing volunteer work
• Expenses up to $50 per month for an exchange student living with you

Legal

• Legal fees for actions involving unlawful discrimination
• Legal fees paid in connection with an IRS Whistleblower award

Medical, healthcare, and disability

• Medical transportation – including tolls, parking, and the standard mileage deduction for healthcare, including visiting doctors and dentists, and picking up medicine
• Nursing home expenses that are primarily for medical care
• Medical aids such as crutches, canes, and orthopedic shoes
• Hearing aids, eye glasses, and contact lenses and the supplies to maintain them
• Hospital fees for services such as nursing, physical therapy, lab tests, and x-rays
• Equipment for disabled or handicapped individuals
• Part of life-care entrance fee paid to retirement home designated for medical care
• The cost of alcohol, drug abuse, and certain stop-smoking treatments
• Special school costs for mentally or physically handicapped individuals
• Wages for nursing service
• MSA or HSA contributions
• Adjustment on Form 1040 of health insurance premiums for some self-employed persons
• Medicare premiums
• Impairment-related work expenses for a disabled person
• Mandatory contributions to state disability funds
• Cost of health insurance premiums, not part of the Premium Tax Credit

Property

• Casualty losses in a federally and some state declared disaster area
• Points paid on mortgage or refinancing

Investments

• Penalty on early withdrawal from a savings account
• Deduction of IRA contributions
• Worthless stock or securities loss
• Amortizable bond premiums
• Pyramid scheme losses

Taxes

• One-half of self-employment tax paid
• State income taxes owed from a prior year and paid in the current tax year
• Last quarter estimated state taxes paid by December 31
• Personal property taxes on cars, boats, etc.
• Real estate taxes
• State and local income or sales taxes
• Taxes paid to a foreign government

Miscellaneous

• Student loan interest
• Gambling losses to the extent of 90% of winnings
• Jury pay given to an employer
• Travel expenses for military reservists
• Moving expenses for active-duty military moving under Permanent Change of Station (PCS) orders
• $350 of unreimbursed classroom expenses for teachers and assistants of grades K-12
• Nontaxable amount of Olympic and Paralympic medals and USOC prize money
• Repayments of supplemental unemployment benefits under the Trade Act of 1974
• Private Mortgage Insurance (PMI) premiums
• Home office for self-employed
• Qualified Business Income Deduction
• Self-employed SEP, SIMPLE contributions
• Alimony paid (pre 2019 divorce agreements)

Still have questions?

If you’re unsure whether you qualify for any of these deductions, contact a Tax Pro today.