When it comes to keeping your money out of the hands of Uncle Sam, things can sometimes be a little challenging. Did you remember to deduct those charitable contributions that you had taken out directly via payroll deduction at work? What about your union dues? The list goes on and on.
Someone once said “that which is not measured, cannot be improved.” Well, in the tax world we like to say, “that which is not tracked, cannot be deducted!” If you make it a habit to just throw things in your “tax file” throughout the year, you can rest assured that you won’t forget it come tax time. We can’t tell you how many people come to us at the end of the year with their tax support in folders, logs, envelopes, boxes, garbage bags, cereal boxes…we think you get the point.
So if you are filing a tax return for this year or a prior year, take a look at the commonly missed deductions outlined below. To make things easy, we’ve even grouped them by category and indicated where they are deducted on the return.
Medical Deductions (Schedule A)
- Medical transportation expenses such as tolls, parking, and mileage for trips to health facilities, doctor’s offices, laboratories, etc.
- Hospital fees for services such as nursing, physical therapy, lab tests, and x-rays
- Nursing home expenses related to medical care
- Medical aids such as canes, crutches, canes, orthopedic shoes, etc.
- Hearing aids, eye glasses, and contact lenses
- Equipment for disabled or handicapped individuals
- Portion of retirement home fee that is related to life-care fee designated for medical care
- The cost of alc