If you are procrastinating your tax return, this article by Jeff Schnepper at MSN Money may help.
If you don't know about a potential tax break, you won't take it. Here are the deductions that a lot of taxpayers seem to forget.
Noncash Contributions
Charity, as I hope everyone remembers, begins with a tax deduction. The value of your donated items - clothes, furniture, whatever - is deductible. Get a written receipt. With noncash charitable contributions, the rule is simple: No receipt means no deduction if you get audited.
New Points On Refinancing
Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan. The amount may not be huge, but every little bit helps.
Old Points On Refinancing
This is one deduction lots of people miss. All unamortized points on an old refinancing are deducted in the year of a new refinancing.
Health Insurance Premiums
Any health insurance premiums you pay, including some long-term care premiums based on your age, are potentially deductible. But if you're self-employed and not covered by any other employer-paid plan, you can deduct 100% your health insurance premiums above the line.
Educator Expenses
If you're a qualified educator, you can get an above the line deduction of as much as $250 for materials… books, supplies and even computer equipment.
Student Higher Education Expenses
For 2005, if your adjusted gross income isn't more than $65,000 ($130,000 on a joint return), you can get an above the line deduction of as much as $4,000 for any higher education expenses you paid. That is unchanged from 2004.
Clean Fuel Deduction
You can get another above the line deduction of up to $2,000 in 2004 and 2005 of the cost of buying a clean fuel vehicle. Hybrid cars qualify.
Investment And Tax Expenses
Many of us forget tax planning and investment expenses because they are part of miscellaneous itemized expenses. Their total must exceed 2% of your adjusted gross income before you get any tax benefit.
Casualty Deductions
If President Bush declared your area a disaster area, you can claim your loss either on your 2005 return or your 2004 return. You can confirm whether you qualify on the Federal Emergency Management Agency's Web site.
Retirement Tax Credit
This one is even better than a deduction. It's a credit -- a dollar for dollar reduction in your tax -- not just in your taxable income. And, it also can come with a deduction. This deduction is designed to give moderate and low-income taxpayers an incentive to save for retirement.
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