The Seven Deadly Tax Sins: Commonly Missed Deductions

It's that time again, 15 April tax deadline is looming large. If you're like most people, you harbor gathered all your tax records, let alone filled your return.

Before you dig, and get started, take this opportunity to first review the list of a few tax deductions you are entitled if you itemize deductions, but most people have. Many of these deductions are subject to limitations, so consider getting professional help from your tax advisor and accountant to determine which deductions you qualify for and items that relate to your specific circumstances. Remember, there are hundreds of deductions in the tax laws, many of them can be pretty vague, but very useful. Here are seven commonly missed deductions to keep top of mind:

• points to the Refinancing: With interest rates so low in 2003, there were a lot of refinancing activity. Any points you pay to refinance your home can be deducted ratably over the term of a new loan. Furthermore, all unamortized points on old refinancing are deducted in the year of the new refinancing.
  
• Health Insurance Premiums: Any health insurance pay, including some long-term care premiums based on your age, are potentially rejected. Medical costs were up 7.5% of their adjusted gross income before you any tax benefits. Self-employed people can deduct 100% of health insurance premiums paid for themselves, their spouses and their families.
  
• non-cash charitable contributions: If you use a charge card for contributions to charity, remember that a deduction is allowed in the year that you made to charge, not when you actually pay the bill. Also, you can deduct any out-of-pocket expenses in connection with charitable activities. Assessment of compensation paid to the value of assets donated to charity can be taken as a deduction subject to a variety of 2% under a variety of deductions.
  
• higher education expenses: If your adjusted gross income was more than $ 65,000 ($ 130,000 for married filing jointly) in 2003, you can get top-line deduction for as much as $ 3,000 for any higher-education tuition and charges you paid. For 2004, the deduction can be as much as $ 4,000. For those at higher adjusted gross income limit ($ 80,000 single, $ 160,000 married filing jointly) the deduction is limited to $ 2,000 for 2004. This deduction must be coordinated with other education credits and savings vehicles.
  
• Rad-cost: you can write off a lot of work and work in search costs, such as education that maintains or improves your skills, certain business tools, dues to labor unions, cell phone depreciation, certain expenses to look for a job in your present occupation, including employment agency fees, resume preparation and travel expenses (local and out of town), and cleaning and laundry bills when on a business trip. Operating costs are in line with the 2% floor on miscellaneous deductions. Furthermore, if you buy a new SUV for business users who weighs over 6000 pounds, and file a Schedule C or other business tax refund may be allowed to write off the full amount (up to $ 102,000 in 2004) in one year, as a business expense subject to limitations.
  
• Clean-Fuel Deduction: If you're in the market for large SUV for business, you can still get a deduction for your car, even worse-line deduction of up to $ 2,000 for 2003 ($ 1,500 for 2004) the cost of buying clean fuel vehicle or a car that uses a significant source of energy other than gasoline. That includes hybrid cars, such as the Toyota Prius, Honda Insight and Honda Civic Hybrid. You can get a deduction in the year of the beginning of the car, and you must be the original owner.
  
• investments and income taxes: In addition to forgetting to deduct tax preparation fees and part of its legal, accounting or financial planner fees that relate to tax planning, many people miss deducting investment expenses. These include certain fees paid to your financial advisor and / or broker and certain IRA fees you pay directly. It also may include mileage for meetings and long-distance phone calls to your adviser or broker. Do not forget to include deductions for the costs of investment publications or subscriptions, safe deposit boxes are used for investment-related documents, and deductions subject to 2% under a variety of deductions.