Generally Overlooked Deductions

State Sales Taxes.

You must choose between either deducting state income taxes or state sales taxes.

For Sales tax, the IRS has a calculator on its Web site to help you figure out the deduction, which varies by your state and income level.

Out-of-pocket charitable contributions. You can write off out-of-pocket costs you incur while doing good works. Supplies, ingredients stamps you buy for your charitable fundraiser count as a charitable contribution. If you drove your car for charity you can deduct 14 cents per mile.

Moving expense to take first job. Moving expenses to get to that first job are deductible, and you get this write-off even if you don’t itemize. If you moved more than 50 miles, you can deduct the cost of getting yourself and your household goods to the new area, including 20 cents per mile along with parking fees and tolls for driving your own car.

Military reservists’ travel expenses. If you are a member of the National Guard or military reserve, you may qualify for a deduction for travel expenses to military events. You can deduct the cost of lodging and half the cost of your meals, plus 48.5 cents per mile and any parking or toll fees for driving your own car.

Refinancing points. When you buy a house, you get to deduct points paid to obtain your mortgage.

Estate tax on income in respect of a decedent.  If you inherited an IRA from someone whose estate was big enough to be subject to the federal estate tax. Basically, you get an income tax deduction for the amount of estate tax paid on the IRA balance. Itemized deduction Schedule A.

EASILY OVERLOOKED DEDUCTIONS

1. Fees for tax preparation services and IRS audits
2. Alcoholism and drug abuse treatment
3. Amortization of premium on taxable bonds
4. Appraisal fees for charitable donations or casualty losses
5. Appreciation on property donated to a charity
6. Casualty or theft losses
7. Cellular telephones
8. Cleaning and laundering services when traveling
9. Commissions and closing costs on sale of property
10. Contact lenses, eye glasses, and hearing devices
11. Contraceptives, if bought with a prescription
12. New job search expenses, including fees for resume preparation
13. Depreciation of home computers
14. Dues to labor unions
15. Education expenses to the extent allowed by law
16. Employee contributions to a state disability fund
17. Employee's moving expenses
18. Federal estate on income with respect to a descendent
19. Fees for a safe-deposit box to hold investments
20 Fees paid for childbirth
21. Foreign taxes paid
22. Foster child care expenditures
23. Gambling losses to the extent of gambling gains
24. Hospital fees (laboratory work, therapy, nursing services, and surgery)
25. Impairment-related work expenses for a disabled individual
26. Improvements to your home
27. Investment advisory fees
28. IRA trustee's administrative fees billed separately
29. Lead paint removal
30. Legal abortion expenses
31. Legal fees incurred in connection with obtaining or collecting alimony
32. Margin account interest expense
33. Medical transportation, including mileage and lodging expenses incurred
34. Mortgage prepayment penalties and late fees
35. Out-of-pocket expenses relating to charitable activities
36. Part of health insurance premiums if self-employed
37. Penalty on early withdrawal of savings
38. Personal liability insurance for wrongful acts as an employee
39. Points on a home mortgage and certain refinancings
40. Protective clothing required at work
41. Real estate taxes associated with the purchase or sale of property
42. 50% of self-employment tax
43. Seller-paid points on the purchase of a home
44. Special equipment for the disabled
45. Special schools and stated feed for medical care included in tuition
46. State personal property taxes on cars and boats
47. Subscriptions to professional journals
48. Theft of embezzlement losses
49. Trade or business tools with life of 1 year or less
50. Worthless stock or securities