Taxes are one of those areas of life that many people find difficult or confusing, and therefore you may not realize that there is a whole raft of legitimate tax deductions available, dependent on your individual circumstances. Sure, there are those obvious ones such as interest on student loans or the home mortgage, but there are plenty of other expenses which you could be claiming each year. Perhaps some of these are missed because they’re not as ‘publicized’ as others, or are hidden away somewhere within the hundreds of pages of tax code that is added to each year.

Here is a short compilation of some of the less-prominent deductions – but do remember that this advice is general in nature and you should always seek professional legal and/or tax advice regarding your own particular situation.

Charity Work / Volunteering

Charity work is not only beneficial for the recipient of your deeds; you can claim a deduction for mileage at a rate of 14 cents per mile.

Mentor Programs

On a similar vein, if you mentor a child or children through the Big Brother or Big Sister programs or other similar organizations, you are permitted to deduct the expenses directly paid for the child(ren) during this mentoring.

Jury Pay

Court compensation for doing your civic duty (i.e., jury pay) is classified as taxable income, however if your employer continued to pay your regular salary and you turned over the court’s compensation to them, you are entitled to claim a deduction for the amount of jury duty pay. Make sure you keep accurate records by taking copies of the checks or retaining your receipts.

Dependent Parents

Our population is aging and as we get older, the medical bills generally go up. If you financially support your parents by being responsible for over half of their total expenses, and contribute to their medical expenses as well as your own, if this total medical bill exceeds 7.5 percent of your annual adjusted gross income you are eligible for a tax deduction for the excess over 7.5 percent, which can be very helpful – especially with ongoing costly medical bills.

Mortgage Loan Origination Fees / Discount Points

Although the housing market is suffering at the moment, people are still buying homes. Subject to certain criteria, the mortgage origination fees or discount points paid to purchase your home are an allowable tax deduction. While most people know that mortgage interest is deductible, these origination fees/discount points are treated as prepaid mortgage interest, and therefore are deductible.

Business-related Meals, Entertainment, and Travel

A couple of additional deductions for those who are self-employed or small business owners relate to the cost of ‘wining and dining’ your customers and/or prospective clients. Meals and entertainment expenses are eligible for a 50 percent deduction, and if you are required to travel away from your home you can claim a 100 percent deduction.

Professional Memberships / Continued Education

A majority of occupations require constant upgrading of skills or membership to various associations. Subscriptions to relevant professional publications and membership fees can be claimed.

Taxation, Investment, and Legal Advice

Finally, of course professional advice in relation to tax preparation, investment advisory services, and legal advice in excess of 2 percent of your adjusted gross income can all be deducted.

This is only a brief list of some of the lesser-known deductions available under the tax code. Take the time to consider your own situation and have a discussion with your tax advisor to ensure you are taking advantage of all of the deductions you are legally entitled to – you may be pleasantly surprised.

Roy Fisher, CPA specializes in providing accounting and tax services to small business owners and professional practices in Houston, TX. For more information, go here: http://www.ledger-solutions.com

Roy Fisher, CPA specializes in providing accounting and tax services to small business owners and professional practices in Houston, TX. For more information, go here: http://www.ledger-solutions.com

Author Bio: Roy Fisher, CPA specializes in providing accounting and tax services to small business owners and professional practices in Houston, TX. For more information, go here: http://www.ledger-solutions.com

Category: Finances
Keywords: CPA advice, business advice, CPA services