| -- End Ad Box ---> | | | | For 2004, the deduction can be as much as $4,000. |
| It's that time again, the April 15 tax deadline is looming | | | | For those at higher adjusted gross incomes limits |
| large. If youre like most people, you havent gathered all | | | | ($80,000 single, $160,000 married filing jointly) the |
| of your tax records, let alone filled your return. | | | | deduction is limited to $2,000 for 2004. This deduction |
| Before you dig in and get started, take this opportunity | | | | must be coordinated with other education credits and |
| to first review a list of a few tax deductions to which | | | | savings vehicles. |
| you may be entitled if you itemize deductions but most | | | | - Work-Related Expenses: You can write off many |
| people overlook. Many of these deductions are | | | | work-related and work-search expenses, such as |
| subject to various limitations, so consider getting | | | | education that maintains or improves your skills, certain |
| professional help from your tax advisor and | | | | business tools, dues to labor unions, cell phone |
| accountant to determine which deductions you qualify | | | | depreciation, certain expenses to search for job in |
| for and which items apply to your specific | | | | your present occupation, including employment agency |
| circumstances. Remember, there are hundreds of | | | | fees, resum preparation, and travel expenses (local |
| deductions throughout the tax laws; many of them can | | | | and out of town) and cleaning and laundry bills when |
| be quite obscure but also quite lucrative. Here are | | | | on a business trip. Work-related expenses are subject |
| seven commonly missed deductions to keep top of | | | | to the 2% floor on miscellaneous deductions. |
| mind: | | | | Furthermore, if you buy a new SUV for business use |
| - Points on Refinancing: With interest rates so low in | | | | that weighs more 6,000 pounds, and file Schedule C or |
| 2003, there was a great deal of refinancing activity. | | | | other business tax return you may be allowed to write |
| Any points you pay to refinance your home can be | | | | off the full amount (up to $102,000 in 2004) in one year |
| deducted ratably over the life of the new loan. | | | | as a business expense subject to limitations. |
| Furthermore, all unamortized points on old refinancing | | | | - Clean-Fuel Deduction: If you are not in the market for |
| are deducted in the year of the new refinancing. | | | | a large SUV for business, you still can get a deduction |
| - Health Insurance Premiums: Any health insurance | | | | for your personal car, another above-the-line deduction |
| premiums you pay, including some long-term care | | | | of up to $2,000 for 2003 ($1,500 for 2004) of the cost |
| premiums based on your age, are potentially deductible. | | | | of buying a clean-fuel vehicle or a car that uses a |
| Medical expenses have to reach 7.5% of your | | | | significant source of energy other than gasoline. That |
| adjusted gross income before they give you any tax | | | | includes hybrid cars, such as the Toyota Prius, the |
| benefit. Self-employed people can deduct 100% of | | | | Honda Insight and the Honda Civic Hybrid. You get the |
| health insurance premiums paid for themselves, their | | | | deduction in the year you start using the car, and you |
| spouses and their dependents. | | | | must be the original owner. |
| - Non-Cash Charitable Contributions: If you have used | | | | - Investment and Tax Expenses: In addition to |
| your charge card for contributions to charity, | | | | forgetting to deduct tax-preparation fees and the |
| remember that the deduction is allowed in the year | | | | portion of your legal, accounting or financial planner |
| that you made the charge, not when you actually pay | | | | fees that relate to tax planning, many people miss |
| the bill. Also, you may write off certain out-of-pocket | | | | deducting investment expenses. Those include certain |
| expenses related to charitable activities. Appraisal fees | | | | fees paid to your financial advisor and/or broker and |
| paid to value property donated to charities may be | | | | certain IRA fees you may pay directly. It also may |
| taken as a miscellaneous deduction subject to the 2% | | | | include mileage for meetings and long-distance phone |
| floor on miscellaneous deductions. | | | | calls to your advisor or broker. Dont forget to include |
| - Higher-Education Expenses: If your adjusted gross | | | | deductions for the cost of your investment publications |
| income wasnt more than $65,000 ($130,000 for | | | | or subscriptions, safe deposit boxes used for |
| married, filing jointly) in 2003, you can get an | | | | investment-related documents, these deductions are |
| above-the-line deduction for as much as $3,000 for | | | | subject to the 2% floor on miscellaneous deductions. |
| any higher-education tuition and fee expense you paid. | | | | |