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Tax Time…What is deductible?

Tax Time…What is deductible?

12 common questionable deductions that stump the average taxpayer. See which you should and should not include in this years taxes.

Home or Apartment Rental
If you work from home, you can claim a home-office deduction. Which you can be able to claim all or part of your rental. Your rent is considered a business loss.

For example, if your home office space is 200 square feet and your home is 2,000 square feet, you would claim 10% of your home-related expenses, including the rent, as a home office deduction; click here for more information on home office expenses.

School Uniform

No. There are no deductions for school uniforms, even if required.

Sending Out Your Resume

Yes you can deduct job hunting expenses, such as the cost of paper, printing and stamps for your resume and online expenses to post your resume to a online services.

Trick is you must be looking for a job in the same profession, you cannot deduct the cost of looking for a job in a new profession

Gift to a Foreign Organization

No. If you want to make financial gifts to foreign countries, make donations to a qualified U.S. organization that offers aid to foreign countries, such as the American Red Cross or Amnesty International USA.

Cheerleading or Sports Camp

No. Sports camps, including cheerleading camp, are considered personal interest expense and are not deductible.

Primary Landline in Your Home

No. The IRS considers a primary landline in your home as personal in nature, even if you use it for business.

Exercise Machine

No. As with most diets and health clubs, exercise machines aren’t deductible, even if your doctor has recommended that you lose some weight in order to improve your health. You can only deduct medical expenses for the diagnosis, cure, mitigation, treatment or prevention of disease, but not the cost of expenses that are merely beneficial to your health.

BusPass

No. In many cities, taxpayers shell out hundreds of dollars each year for bus passes and transpasses.

Private School

No. Private school costs for most elementary and high school students are not deductible. However, child care services such as Pre-K, nursery school, preschool or similar programs are deductible.

Pregnancy Test

Yes. A pregnancy test, is considered to be a diagnostic test (including, for example, a blood sugar test kit), is deductible.

Over-the-Counter Medication

No. Nonprescription medicines are not deductible. However, all prescription-based medications are deductible.

Breastpump

Yes. The IRS recently changed its position on breastfeeding supplies (including pumps and bottles) and deemed them deductible. However, infant formula remains nondeductible.

 

Read more: http://www.foxbusiness.com/personal-finance/2011/02/25/deductible-evaluate-12-common-expenses-156432240/#ixzz1GlucObHJ

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