10 Common Tax Deductions You Shouldn’t Miss

Posted in Tax , Tax Deductions • January 21, 2010

great tax deductions

If you’re used to filing your taxes, you know that there are a lot of options when it comes to taking your deductions. There are deductions that you could take advantage of in the adjusted gross income section, as well as some that are available if you choose to itemize your deductions.

In the adjusted gross income section you find more of the common tax deductions that you could skim right over if you’re not careful. So to make sure you don’t miss them, here is a list of some of the common tax deductions you shouldn’t miss.

1. Alimony Paid Tax Deduction

If you paid alimony or separated maintenance to your ex-spouse within the current tax you, you may be eligible for an Alimony Paid Tax Deduction.

A couple of qualification guidelines for the deduction include you the alimony in cash, you and your former spouse do not file a joint return with each other and your payment is not treated as child support.

2. Self-Employment Tax Deduction

If you are self-employed, you have the major obligation of paying your own self-employment taxes, which can get pretty hefty. To help alleviate the sizable cost, you can take advantage of a self-employment tax deduction that helps to adjust your income.

3. Self-Employment Health Insurance Tax Deduction

Another deduction you may be able to benefit from is the Self-Employment Health Insurance Deduction that allows you to deduct the full cost of health insurance you purchased for yourself, your spouse, and/or your dependents.

This is only eligible to self-employed workers who do not participate in a group health plan.

4. Self-Employed SEP, SIMPLE, Retirement Plan Deduction

If you are self-employed, you could receive a deduction for contributions you’ve made to an SEP, SIMPLE or Keogh retirement plans.

5. IRA Deduction

Contributing to your IRA allows you to take what’s called an above-the-line tax deduction for your contribution. Taking this deduction allows you to reduce your taxable income dollar-for-dollar.

6. Educator Expenses Deduction

Eligible educators can deduct up to $250 of their unreimbursed expenses paid or incurred for books, supplies, computer equipment (hardware, software and services), equipment and supplementary materials that are used in the classroom.

7. Tuition and Fees Deduction for College Expenses

If you or your spouse is currently a college student, you may be able to deduct the cost of college tuition and other mandatory school fees. Luckily, this is a deduction you don’t have to itemize to take advantage of. Instead, you could either use is as a way to adjust your income or take a college fees credit.

This is definitely one you don’t want to miss.

8. Student Loan Interest Deduction

If you are a current or former student paying on a qualified student loan, you may be able to deduct the interest you pay. A few ways to qualify for this deduction is to make sure that you’ve paid interest on a qualified student loan within the current tax year and that your filing status is not married filing separately.

9. Health Savings Account Deduction

Contributing to a qualified health savings account (HSA) could get you this deduction. However, in order to qualify, you must be covered by a high-deductible health insurance plan and cannot be covered by any other health insurance plan.

10. Moving Expenses Tax Deduction

Moving due to starting a new job – or even if you’re seeking work in a new city – may grant you eligibility for a deduction of your moving expenses from your income. In order to qualify, you must pass two tests: the “distance test” (you new job must be at least 50 miles farther from your old home than your old job location was from your old home) and the “time test” (you must work full time for at least 39 hours during the first 12 months right after you arrive in the general area of your new job).

There are a number of additional deductions to take advantage of that are hidden within the itemized deductions section. To look at the full list of additional deductions, visit the IRS website.

Don’t Know What Else You Can Deduct?

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