10 big deductions too many of us miss

A lot of taxpayers don't know they can save thousands of dollars with these tax breaks. Did you forget about any of these deductions and credits?

By Jeff Schnepper, MSN Money

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VIDEO ON MSN MONEY

50Comments
Feb 19, 2011 9:38AM
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I sure would like to see the penalty for taking money out of a 401 k be slashed. No one hits their pension unless their boat is sinking so it adds a real burden to an already burdened soul.

Feb 17, 2011 10:35AM
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Yes if you cheat you will be caught in the long run - don't do it.
Feb 17, 2011 10:32AM
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Rid the nation of the IRS.  It can be done among intelligent people, but . . . .
Feb 19, 2011 12:39PM
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I got a great deduction for my wife's old broom. It use to get 30 miles to the gallon.
Feb 17, 2011 1:33PM
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I do take every deduction I can, because I don't want the government using MORE of my money than absolutely necessary to fund programs I don't believe in (welfare for instance). I wish I could tell them where they were allowed to spend it, but since I can't, if I can limit their available funds, I will.
Feb 17, 2011 10:29AM
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Who's going to be stupid enough to challenge the IRS by knowingly taking a deduction without any receipts to back it up?  That's just asking the IRS - "HEY AUDIT ME!!!!"  No Thanks.
Feb 17, 2011 10:05AM
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you shouldn't be advising people to take charitable donation deductions without a receipt to show for it. it absolutely can backfire on you. it happened to one of my parents and they had to repay $3000. Now they make sure there is a paper trail.
Feb 17, 2011 11:51AM
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The 10 things listed are all well and good.  However, with a couple of exceptions, they must be taken as itemized deductions.  I expect the vast majority of us use the standard deduction because it is more than all our itemized deductions combined.  They sound good, though, if you don't know the difference.

 

Income adjustments and tax credits are always good because they either reduce your adjust gross income or the total amount of taxes owed, and they are not itemized deductions.

Feb 19, 2011 9:15AM
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There is certainly irony n the statement regarding the book, How to Pay Zero Taxes, - "borrow from the library".

 

 

How do you think Libraries are funded? cetainly not from your paltry membership fees.

Feb 29, 2012 4:19PM
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I have a great issue. I am driving 2400 miles a month to work. … but I cannot find a way to deduct or save in taxes. Now the situation is bad as my wife is without work for a Year. I did have to get a cash loan from my 401k to pay for my mortgage and now I do have to paid to IRS more than $10’000.00 in taxes.

·         One working

·         Wife without work for a year

·         $10’000 in taxes

·         Cash Loan for the house is gone

·         Unable to refinance the house from 0.8% to 0.4% because the estimated price of the house is $49’000 when Mortgage is still $73’000.00

Do somebody has an extra gun? … or a better advise.

Feb 19, 2011 10:29AM
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You can keep track of the clothing deductions all year on turbo tax. i honstley gave about $5,000 dollars worth of items out of my garage this year we have two boys my husband and myself, we kept saying we'll have a yard sale but the stuff kept piling up so i took it all to the good will they where happy to see all of the wonderful things we brought. Good luck Guys!
Feb 19, 2011 9:44AM
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The tax codes change just about every year, and its so hard to understand and that's why people don't realize what they can and cannot take as deductions.
Feb 18, 2012 7:54AM
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Hey, I paid towards my son's higher education - does that mean i get his credit????  :)

 

Feb 19, 2011 8:24AM
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to Beach Boy Bob,  Nice Talk .Grow Up.  You hate the government It gives you the freedom to say so. You should move to Iran with them do-do's. You probably find all the welfare programs you can to live on a free ride. Go join the radicals.
Feb 18, 2012 5:10AM
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I do not like taxes anymore than anyone else but go to a poor country for a year and then come home and you will not complain, as much.  You will realize how good you have it and even with our "screwed up" government you will be glad you live in the USA. 
Mar 29, 2011 6:55PM
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"Starting with 2007 returns, the law has required a receipt or some sort of written confirmation for all charitable donations. Feel lucky? Play the audit lottery. You're still an honest person."

WTH?  I'm a CPA and I prepare hundreds of tax returns every year.  Don't do what this guy says.  He's a detriment to your well being.  Trust me.
Mar 1, 2012 9:22AM
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"How to pay zero tax" i think it is a little too exagerate. it would cost me to give away nearly all i

have just enough to cover $1000 tax owed. Charity is good and we should look out for poor people.

However, you will never get back same credit for whatever good you first bought. For example, you just buy a pair of jeans $100 and went home and found it is not fit and have lost receipt,you can't

return the item. at charity the maximum credit you could get is 10% or under. to get it plus others

give away items to Zero Tax is next to impossible.Beside, i wonder if you could get a deduction for

the purchase of this book, anyway. But, it would make more sense if it entitled " How to minimize

your tax down to nearest zero tax". The public is not a stupid people.

Feb 19, 2011 9:00AM
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If you take the stranded deduction with out any receipts, Chances are you will never get audited ,
I know this to be true.

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Whitney, are you sure your stuff was worth that much?  You know that used stuff is not worth that much.  You would have to have $20,000 worth of stuff to claim $5000.  I just claim a certain amount every year.  It doesn't call attention....
Feb 19, 2011 8:17AM
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I didn't work for me. I wrote all my stuff down on paper that Goodwill give me and had an excuse with HR block that I didn't have enough to claim. The taxes is really our money coming out of our pay checks. And to the IRS it just a loan. They take it away from you. And give back by the end of the year.
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