Where Knowledge Rules

Home:

Personal Finance

Get a Widget for this title

Overlooked tax deductions: Some personal expenses

Don't forget to deduct these items on your 2007 Schedule A:

1. Travel to and from doctors, dentists, hospitals, clinics, therapists, etc. to receive medical care, and round-trip travel to visit a sick spouse or dependent if the visits are recommended by a doctor as part of the patient's treatment. If you take a taxi, bus, train, airplane or ambulance you can deduct the actual expense. If you drive you can deduct 20 cents per mile in lieu of gas and oil, plus any parking fees and tolls.

2. Health insurance premiums, whether you pay the premium directly or it is deducted from your payroll or pension check, unless the payroll deduction is part of a pre-tax Section 125 or cafeteria plan. This includes the amount deducted from Social Security and Railroad Retirement checks to pay for Medicare Part B premiums.

3. Long-term care insurance premiums. The deduction is limited based on the taxpayer's age Age 40 or less = $290.00, Age 41-50 = $550.00, Age 51-60 = $1,110.00, Age 61-70 = $2,950.00, Age 70 and older = $3,680.00. Each spouse is treated separately in determining the age-based limitation.

4. Unreimbursed medical expenses which are paid during the year for yourself, your spouse and any of your dependents. This includes amounts paid for a person who would other-wise qualify as a dependent but cannot be claimed as one on your tax return because his/her income exceeds the $3,400.00 income limitation or because that person filed a joint return, and a person who was your dependent in the year the expenses were incurred but not in the year the expenses were actually paid.

5. Contributions to a state unemployment and disability fund that are withheld from your paycheck, as is the practice in California, New Jersey, New York, Rhode Island, Washington and West Virginia. These taxes are considered state income taxes for the purpose of electing to deduct state and local sales taxes. If you elect to deduct state and local sales taxes instead you cannot also deduct state unemployment and disability taxes.

6. The portion of your annual maintenance fee assessment for a time-share condo, such as Marriott or Disney, which represents your share of the property's real estate taxes. This amount should be identified on your annual billing statement.

7. The amount of real estate taxes paid as an adjustment at the closing for the purchase or sale of a residence or vacation property. This is the estimated real estate tax liability from the date of the closing until the next regular tax assessment


Below are the top articles rated and ranked by Helium members on:

Overlooked tax deductions: Some personal expenses

  • 1 of 2

    by Bob Henkels

    The best idea you can remember is to try and make normal, personal expenses deductible. Do not think for one second that

    read more

  • 2 of 2

    by Robert Flach

    Don't forget to deduct these items on your 2007 Schedule A:

    1. Travel to and from doctors, dentists, hospitals, clinics,

    read more

Add your voice

Know something about Overlooked tax deductions: Some personal expenses?
We want to hear your view. Write_penWrite now!

Helium Debate

Cast your vote!

Are government bonds safe to invest in?

Click for your side.

136151

Featured Partner

MENTOR - National Mentoring Partnership

MENTOR has partnered with Helium, giving you the chance to write for a cause. Browse MENTOR's featured titles, p...more

What is Helium? | Buy Web Content | Contact Us | Privacy | User agreement | DMCA | User Tools | Help | Community | Helium’s Official Blog | Link to Helium

Helium, Inc.
200 Brickstone Square Andover, MA 01810 USA