3 lesser-known expenses you can deduct from your taxes
by. Dan Caplinger
When it comes to tax deductions, most taxpayers focus on items that have the most impact, such as mortgage interest and state income or sales taxes. Yet lesser-known tax breaks can also help you boost your itemized deductions.
Let’s take a look at three miscellaneous deductions that many people don’t even know exist, as well as the overarching limitation on how much you can deduct.
1. Unreimbursed Employee Expenses
Many employees have to pay work-related costs out of pocket without getting reimbursed. Tax laws allow you to deduct certain expenses that you pay in connection with your work as an employee as long as they’re ordinary and necessary to your job. The way these rules get applied differs depending on your profession, but the general idea is that if an expense is commonly accepted in your business and is appropriate and helpful for you to get your work done, it can qualify for a deduction.
The Internal Revenue Service gives several examples. Some of the most common include business liability insurance, depreciation on computer equipment that you pay for, professional dues, home-office expenses and travel expenses. Work-related education and job-search expenses in your current line can also be deductible.continue reading »