16. Classroom deduction for teachers:
K-12 educators who work at least 900 hours during the school year can
claim an above-the-line deduction of up to $250 ($500 if married
filing joint and both spouses are educators, but not more than $250
each) of any unreimbursed expenses (books, supplies and computer
equipment -- including related software and services -- other
equipment, and supplementary materials) used in the classroom. (IRS Topic 458)
17. Estate tax on income in respect of a decedent:
This sounds complicated, but it can save you a lot of money if you
inherited an IRA from someone whose estate was big enough to be subject
to the federal estate tax. Basically, you get an income-tax deduction
for the amount of estate tax paid on the IRA assets you received.
Let's say you inherited a $100,000 IRA, and the fact that the money
was included in your benefactor's estate added $35,000 to the
estate-tax bill. You get to deduct that $35,000 on your tax returns as
you withdraw the money from the IRA. If you withdraw $50,000 in one
year, for example, you get to claim a $17,500 itemized deduction on
Schedule A. That would save you $4,900 in the 28% bracket.
18. Out-of-pocket charitable contributions:
It's hard to overlook the big charitable gifts you made during the
year, by check or payroll deduction (check your December pay stub). But
the little things add up, too, and you can write off out-of-pocket
costs incurred while doing work for a charity. For example, ingredients
for casseroles you prepare for a nonprofit organization's soup kitchen
and stamps you buy for your school's fundraising mailing count as a
charitable contribution. Keep your receipts and if your contribution
totals more than $250, you'll need an acknowledgement from the charity
documenting the support you provided. If you drove your car for charity
in 2012, remember to deduct 14 cents per mile plus parking and tolls
paid in your philanthropic journeys.
19. Military reservists' travel expenses:
Members of the National Guard or military reserve may tap a deduction
for travel expenses to drills or meetings. To qualify, you must travel
more than 100 miles from home and be away from home overnight. If you
qualify, you can deduct the cost of lodging and half the cost of your
meals, plus an allowance for driving your own car to get to and from
drills. For 2012 travel, the rate is 55.5 cents a mile, plus what you
paid for parking fees and tolls.
20. Contact lenses: Contact lenses are tax deductible
but, "very few taxpayers get to deduct them because you get to deduct
such costs only to the extent that unreimbursed expenses exceed 7.5
percent of your Adjusted Gross Income (AGI)." This means that if your
AGI is $50,000, for example, you would have to spend over $3,750 in
doctor fees to qualify for this exemption. These contact lenses must be
for medical reasons. Colored lenses to get a majestic glare, made famous by Edward from Twilight, are taxable. But, according an IRS publication,
"You can also include the cost of equipment and materials required for
using contact lenses, such as saline solution and enzyme cleaner."
21. Home improvements that save energy You could get up to 100 percent tax credit on certain garden variety energy saving home improvements
for your primary residence. Although the cap on this break is $500, it
is not contingent on your income. Even though this tax credit seems
lucrative, it has drastically been cut since 2010. The cap used to be
$1,500 but was amended since Obama extended the Bush-era tax cuts.
22. Moving costs for your first job IRS Topic 455 states,
"If you moved due to a change in your job or business location, or
because you started a new job or business, you may be able to deduct
your reasonable moving expenses but not any expenses for meals." This
IRS status specifies that to qualify for this deduction, "your new
workplace must be at least 50 miles farther from your old home than your
old job location was from your old home," and, "if you are an
employee, you must work full-time for at least 39 weeks during the
first 12 months immediately following your arrival in the general area
of your new job location." Special rules also apply to international
and military moves. Also, recent graduates are not yet eligible for
this tax break.
23. Job-hunting costs like cab fares, food, lodging and transportation According to Bankrate,
tax deductible job-hunting costs include, "Employment and outplacement
agency fees, resume services, printing and mailing costs of search
letters, want-ad placement fees, telephone calls and travel expenses."
Even though this list seems exhaustive, there are some limitations to
keep in mind. First, this law only applies if you are looking for a new
job in the same field. If you are an ex-lawyer looking to relocate to
Los Angeles to live your childhood film producer dreams, you are out of
luck!
Also, these benefits
don't apply to recent graduates who have never yet contributed to the
internal revenue pie.This law is stern and you must remember to show
receipts as well a detailed log of your travels. The IRS is scrupulous
about making sure that you are actively searching for a job, not just
vacationing with friends and family while dropping off resumes.
24. Reinvested dividends
This isn't really a tax deduction, but it is an important subtraction
that can save you a bundle. And this is the break that former IRS
commissioner Fred Goldberg told Kiplinger's that a lot of taxpayers
miss. If, like most investors, your mutual fund dividends are
automatically used to buy extra shares, remember that each
reinvestment increases your tax basis in the fund. That, in turn,
reduces the taxable capital gain (or increases the tax-saving loss)
when you redeem shares. Forgetting to include the reinvested dividends
in your basis results in double taxation of the dividends -- once when
they were paid out and immediately reinvested in more shares and later
when they're included in the proceeds of the sale. Don't make that
costly mistake.
If you're not sure what
your basis is, ask the fund for help. (Starting with sales in 2012,
mutual funds must report to investors -- and the IRS -- the tax basis
of shares redeemed during the year. But note this: The new rule applies
only to shares purchased in 2012 and later years. If you redeemed
shares you purchased prior to 2012, it's still up to you to figure your
basis. Don't forget
沒有留言:
張貼留言