Tax Time: Some Commonly Missed Deductions

April 15th is just around the corner. If you are like most people, you have been putting off the task of filing your taxes. Don’t feel bad. I haven’t got mine done either. But, since most of us are procrastinators, maybe you can use a few of the following commonly overlooked deductions when you sit down and prepare your taxes. First though, I must add that these may or may not be applicable to everyone. The circumstances of your situation will determine whether or not you qualify.

1. Points paid on a home mortgage
   If you pay points to a lender in the course of financing your principal residence, the points may be fully deductible in the year in which they are paid. The key is that the points you paid were to obtain a lower interest rate on the loan. There are other tests which must be met in order to fully deduct the points but generally, if the loan was made by an established lender and the payment of points is an established business practice in your area, they are fully deductible on Schedule A.
   
   
2. Out-of-pocket expenses related to charitable activities
   If you have unreimbursed expenses related to amounts you paid in giving services to a qualified organization, you may be able to deduct them. Items which may be deductible include meals, travel and even the cost of a uniform if it is not suitable for everyday use. You can deduct the actual cost of using your car or deduct a standard rate of 14 cents per mile. Examples of deductible expenses would be mileage to deliver meals to the elderly, expenses related to being a scout leader or attending a charitable organizations regional meeting as their representative. These expenses are deducted on Schedule A.
   
   
3. State personal property taxes on cars and boats
   Personal property tax on cars and boats is deductible if it is a state or local tax that is charged on personal property, is based only on the value of the property and is paid annually. Not all states have personal property. Check with your state department of revenue or your county licensing bureau to see if your state charges a personal property tax. These taxes are deducted on schedule A.
   
   
4. Employee’s moving expenses
   If you took a new job in the past year which required a move, you may be able to deduct some of the costs of the move. The key to being able to deduct your expenses is meeting "the distance test". Subtract the total miles from your old home to your old job from the total miles from your old home to your new job. If the answer is greater than 50, you meet the test. Types of expenses which may be deductible are moving van rentals, lodging and mileage to drive your vehicles at 10 cents per mile. Use Form 3903 Moving Expenses to help you determine if you qualify. If you do, the expenses from Form 3903 are then reported on page one of your Form 1040.