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Getting the most from itemized deductions
The IRS allows you to deduct the miles
you drove your personal car to the soup kitchen where
you volunteer each weekend. The standard mileage rate for travel done
to help out a charitable organization is 14 cents per mile.
Are you a Boy Scout or Girl
Scout leader? Then the cost of your uniform
and its upkeep -- dry cleaning, tailoring,
repair -- is deductible.
Letting
the IRS share your losses
Most taxpayers think they can deduct casualty losses
only if they are victims of a catastrophic natural
disaster.
But you don't have to suffer through a
fire, flood, hurricane, tornado or earthquake to claim
a casualty
deduction. Losses from theft and vandalism are eligible
losses, as are any damages from an automobile accident
as long as it wasn't the result of driver negligence.
The IRS does limit, however, just how
much of these losses you can use to reduce your taxable
income. Any amount here must be reduced by $100, and
then it must exceed 10 percent of your adjusted gross
income.
Myriad
miscellaneous expenses
This is a fun category if you've got the patience --
and receipts -- to back up your spending. And you'll
need the receipts, because this category, like the medical
one, is limited. The total of your miscellaneous deductions must be more than 2 percent of your adjusted gross income.
If you looked for a new job this year, be sure to count your job-hunting expenses here. Just remember that your job search
has to be in the same field in which you're already
employed. Any subscriptions to work-related publications
also can be taken here, as can fees you paid for membership
in a professional organization, as long as you weren't
reimbursed by your employer.
Do you have a hobby that nets
you a bit of extra spending money throughout
the year? Any costs you had toward that hobby
can be totaled up as a miscellaneous expense.
But you can't deduct more than you made on
the hobby. (To collect a few more tax breaks, maybe you should consider turning your hobby into a business.)
Maybe your hobby is a bit more glitzy -- trips to Las Vegas or Atlantic City, N.J., for a little recreational gambling. If it wasn't a good year at the roulette
wheel, the IRS lets you deduct your losses. These losses
aren't limited by the 2-percent cap, but you can't deduct
in losses more than you won.
And finally, if this whole deduction process
just got too taxing for you and you paid an accountant
to figure it out for you, here's a final itemizing gift
from the IRS. Fees paid to professional
tax preparers are deductible, too.
| -- Updated: March 27, 2009 |
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