No, you can't deduct credit card interest (usually), job-hunting clothes or commuting costs. But people keep thinking they can.
Many eligible taxpayers avoid this deduction because they've heard it's complicated and likely to trigger an audit. There are lots of rules, but here's the plain-English translation.
Buying a home complicates your tax return but may provide savings. Mortgage interest, points and PMI are deductible, and you may get tax-free profits when you sell.
If your medical expenses exceed 7.5% of your income, you can deduct what you pay for medical care, including eyeglasses and mileage for doctor visits.
The president wants to cut taxes on investment and add a 10% credit for businesses that create jobs or raise wages. Some of his proposals already have bipartisan support.
The previous exemption of the first $2,400 in unemployment benefits from federal tax is over. Job-search costs, training for a new job and relocation expenses may be deductible.
If you suffered losses from a flood, hurricane or other disaster that weren't covered by insurance, you may be able to deduct your losses on your federal income tax return.
Helping out those in need is always a good thing to do. But it's only sometimes tax-deductible. Make sure you know the rules.
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