Tax Write-Off Ideas

Our tax customers often ask us: “What can I deduct to lower my tax bill”? Below we have listed 46 ideas that may work for you. To take full advantage of the ideas that could benefit you, use TaxSmarty.com online tax software powered by CompleteTax. It will be your guide to ensure you receive the best benefits from the IRS !!

1. Fees paid to a tax preparation service like your accountant or TaxSmarty online software fee

2. Fees paid for an IRS Audit

3. Rehab treatment services like Alcohol and Drug

4. Fees paid to have items that you donate to charity appraised (valued)

5. Fees paid to have items valued that were lost in a casualty such as a fire or flood

6. Theft or Casualty losses

7. Phones (this is related to using your phone for work as required by your employer that is not your only (read: personal) phone line into your home)

8. Do you travel for business? – cleaning or laundering service while traveling

9. Certain closing costs for buying or selling a rental property or refinancing that property

10. Home computer depreciation if the computer is used for business or taxable investing

11. Contact lenses, hearing devices and prescription eyeglasses

12. Prescription expenses for contraception

13. Expenses associated with searching for a new job in your present occupation, including money spent for resume prep and employment outplacement agencies.

14. Labor Union Dues

15. Employer required expenses for education, maintaining your licenses, improving skills etc.

16. Your contributions to a state run disability fund.

17. Moving expenses (related to moving for work)

18. Money paid for self employment tax

19. Paid Foreign taxes

20. Fees paid for a safe deposit box that holds investments (i.e. stock certificates)

21. Childbirth preparation class expenses if the instruction is related to obstetrical care

22. Expenses paid for foster care

23. Gambling “losses” (deductible as an itemized deduction up to the amount of gambling winnings claimed)

24. Expenses paid to a hospital for services like: lab work, therapy, nursing services, and surgery

25. Home energy improvements such as a qualified HVAC system, insultation, windows and doors, etc. (this is a good one because it's a credit directly deducted from taxes paid as opposed to a deduction from taxable income)

26. Impairment-related work expenses for a disabled individual

27. Investment advisory fees

28. Separately billed IRA trustee admin fees

29. Expenses due to having lead paint removed from your home

30. Fees incurred in connection with collecting or obtaining alimony

31. Long-term care insurance premiums

32. Travel expenses incurred from having to travel and perhaps be lodged away from home due to medical reasons

33. Prepayment penalties and late fees for your mortgage

34. Expenses related to charitable activities such as travel or supplies purchased by you used in your charitable activities

35. Health insurance premiums

36. Monies paid for penalties associated with early savings withdrawals

37. Personal liability insurance for wrongful acts as an employer

38. Points (and other applicable closing costs) for home mortgage or investment property refinancing

39. Expenses for work-required clothing

40. Taxes associated with the sale or purchase of Real Estate

41. Certain seller-paid closing costs paid on your behalf

42. Special equipment if you are disabled

43. Special schools and separately stated fees for medical care included in tuition

44. Personal property taxes charged by your state on cars and boats

45. Professional association fees and subscriptions to professional journals

46. Theft or embezzlement losses

This list is not exhaustive, nor are all of these items necessarily in the tax code. It is a collection of items for you to consider and consult with a qualified tax preparer to determine their applicability to your situation. Your friends at TaxSmarty.com look for ways to save money from time to time, so for our customers and blog readers, this list is an attempt to provide some ideas for this very thing.