June 15, 2007, Newsletter Issue #69: Tax Deduction Checklist

Tip of the Week

With so many items being potentially deductible on your tax return, here are some checklists for you to follow:

Miscellaneous Job Costs. These expenses are for the employed individual who has unreimbursed expenses that were incurred for the benefit of their employer. The total amount of the expenses are subject to the 2% Adjusted Gross Income floor. This floor is put in place to disallow many frivolous expenses, according to the IRS.

Professional and association dues Work clothes expense (includes safety helmets, safety shoes, uniforms, etc.) Employment agency fees (“headhunter fees”) Tax preparation and advice fees Employee home office expenses Work related educational costs (including tuition) Tools Travel, entertainment, lodging, and meals on overnight trips (business related) Casualty losses and charitable property contribution appraisal fees Parking fees and tolls Automobile expense Dues and subscriptions Job-hunting expenses (in the same line of work only). Does not apply to first job seekers. Local transportation to clients (including taxi fares)If your employer gave you a mileage allowance during 2006 that exceeded $.445 per mile, the excess will be considered taxable income (wages) on your tax return.

Investment, Legal, and Tax Advice Expenses These expenses are also considered miscellaneous. They are included in the amount that is subject to the 2% Adjusted Gross Income floor. All items are directly related to the income-producing property you own. Included in this area are the following:

Safe-deposit box rental fee. The box must be used to hold your securities (not including tax-exempt securities). No personal effects are allowed to be stored in the safe-deposit box. Investment service subscriptions Any legal fee incurred while involving your income-producing property. Any salary paid for record keeping of your investment income (bookkeeper, etc.) Professional fees paid such as accounting Fees to administer or set up an IRA. These must be billed and paid separately from your regular IRA account. Theft or casualty loss of your income-producing property Fees paid for collecting dividends and interest on your income-producing property. Bank fees are included in this category. Stipulations apply. Any fees paid for investment management or investment planner except those involved with tax-exempt securities.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Taxes Tip Site? Request a Tip Now!


Guru Spotlight
Byron White