10 most overlooked tax deductions
October 2, 2009 · Tagged with Taxes
Fees for a Worthy Cause
You donated your skinny jeans and your wagon-wheel coffee table to Goodwill and reduced your taxes by increasing your miscellaneous deductions, but you can fatten the sum of your miscellaneous deductions when you remember to include associated fees, such as appraisal fees, for the big-ticket items you donate.
The IRS requires that you provide “a qualified appraisal of the item with the return” when you donate an item worth more than $500. For items like electronics, appliances and furniture, you need to pay a professional to assess the value of your donation; that fee for service is deductible.
Free Rides for Charity
If you’re the type of person who likes to donate your free time to volunteer in your community and you dip into your own wallet to get to your favorite charity, you can add those expenses to your miscellaneous deductions. Whether you ride the bus or drive your own car, keep good records of your charitable activities and keep receipts for public transportation or mileage logs for your car (for which you can charge the standard mileage rate for charitable organizations), as well as receipts for parking and tolls.
Washing Away Tax Liability
It’s easy to remember to deduct the cost of plane tickets and hotels when you travel for business, but you’ve got to look snappy when you’re networking out of town, and that often means sending suits to the cleaner. Hang on to laundering receipts and you can clean up when the total pushes you over the 2% limit for miscellaneous deductions.
Shipping Out Savings
The IRS understands that you can’t lug all your work with you when you travel. Sometimes you have to ship documents, displays, or even baggage ahead of time. You are allowed a write-off for shipping and baggage costs as part of your miscellaneous deductions, and because some airlines up the ante of travel by charging you to check your bags, this tax write-off eases the burden of getting your stuff from Point A to Point B. Don’t shove that baggage receipt in a coat pocket and forget about it – keep it with your business documents and file it away for April.
Networking for Cash
The business of doing business as you travel means calls to connect with contacts, faxes to confirm orders and internet access to research information. When you pay a surcharge to stay connected, such as for hotel phone calls or coffee shop internet access, count that fee toward your miscellaneous deductions. Make sure to get itemized bills from your hotel and receipts of your networking transactions so you have solid records. And no, you can’t charge for the vanilla latte that kept you awake through your boss’s lengthy emails.