Finances – Tax Deduction Checklist

Tax deductions are what get you bigger refunds. If you itemize your tax return you need to have a good idea of what you can deduct. This checklist covers most of the major tax deductions.
Tax Deduction checklist

  • Form 1098 or your mortgage statement: if you purchased a home in the previous tax year and prior tax return or if you refinanced in the prior year and are deducting points on that loan over its life.
  • Investment interest expense: Brokers’ statements showing any margin interest paid and loan statements for loans taken out to purchase investments.
  • Losses due to theft: include a description of property and insurance reports showing reimbursement or any cancelled checks showing value of property.
  • Charitable donations: bills, receipts or cancelled checks for cash donations, mileage records for charitable purposes, receipts from charitable agency with estimated value in the case of property donations, prior years’ tax returns for any unused charitable contributions.
  • All work related expenses : Reimbursement check stubs or reports from an employer, union dues, receipts, bills or invoices for supplies, gifts to clients, any uniforms or special clothing, seminars attended, professional publications and books. Travel information including invoices or receipts for transportation, lodging, restaurants and parking. Any job search expenses and job related educational expenses.
  • Misc. deductions like Tax preparation fees, cost of income tax return preparation software and books. Safe deposit box rental fees from bank. IRA custodial fees, investment advice costs.
  • Last year’s state income tax return, W-2 and any cancelled checks for state estimates you’ve paid.
  • Medical and dental expenses including Form SSA-1099, year-end pay stub for premiums paid through your after tax wages, mileage records for trips to the doctor, clinics, etc.
  • Real estate tax collector bills or cancelled checks and Form 1098 or closing statement if you bought, sold, or refinanced property in the tax year.
  • Any tax bills or cancelled checks for personal property like automobiles.
  • Employee SSN and wages paid during tax year to any household employees.
  • Records showing any estimated tax payments or overpayments for prior years.
    You could save huge in tax preparation fees by being a bit organized. You can also save a lot of time by getting all your required documents in order before you go to a tax preparer or start your tax return online.

    This communication is for information only. Please consult a tax professional regarding tax deductions.