There may be some tax deductions you are unaware of or have some questions about what to report as income on your federal tax return. Below are some tax tips to help you in your filing process. If you are filing with a tax preparer you may want to print out the list and bring it with you to make sure they are not forgetting any deductions.

1. Vehicle Expenses and Insurance Premiums

   If you use your car for business purposes then you can choose to deduct expenses on your vehicle or your mileage (you can only choose one). Your expenses may include gas, oil, tires, licenses, repairs, all other related expenses, even your insurance premiums.

2. Health and Long-term Care Insurance Premiums

   If you are self-employed, you may be able to deduct all your health and long-term medical care for yourself, your spouse, and other dependants. But be aware that that deduction is taken as an adjustment to your income and can only be taken if you or your spouse is self-employed and not covered by an employer health insurance plan.

3. Medical Expenses

   If you are not self employed, you may be able to deduct some medical expenses depending on your income, and the type of health, dental, and long-term insurance premiums you have. This medical expenses deduction is limited to costs over 7.5% of one’s income. Because of this limitation it is a good idea to schedule and pay for all medical procedures before December 31 of the tax year.

4. Miscellaneous Insurance Expenses

   Some miscellaneous insurance expenses may be deductable for some people but are subject to amounts over 2% of adjusted gross income. Insurance miscellaneous expenses may include liability insurance premiums, safe deposit box rentals used to store investment papers on insurance annuities, unreimbursed employee malpractice insurance, and appraisal fees for casualty losses not reimbursed by insurance. Also, for a retiree’s tax return, who is deceased before the entire investment is recovered, the remaining unrecovered investment in an insurance annuity may be deducted.

5. Job-related Moving Expenses

   You may be able to deduct any job-related moving storage expenses, including the cost of storing and insuring household goods and personal items, as long as it is within 30 consecutive days after the items have moved from the previous home to the new one.

6. Check Previous Federal Tax Returns

   You may not know that federal tax returns can be amended for up to three years; so if you feel you had some deductions on previous returns that you did not claim, you then may be able to amend the return to include the deductions and receive a refund if applicable. You may also purchase additional copies of previous years from the IRS.

7. Unemployment Insurance Benefits

   Any unemployment insurance compensation is considered taxable income, so remember to report any state or federal unemployment insurance benefits you receive during the tax year you are filing for.

8. Some Things Not to Deduct

   Casualty and theft losses: Damages on your home such as tornadoes and floods, as well as damages to your automobile, may be deductible if you itemize deductions. The losses must be reduced first by your insurance company at least $100 plus. Then you may furthermore reduce up to 10% of your adjusted gross income.
   The following are not considered taxable income: Worker’s compensation, child support payments, military allowances, veteran’s benefits, welfare benefits, and cash rebates from a car purchase

   Record Keeping Tips
   Do you dig frantically through papers to find the documentations you need to prepare your tax return? Are you unsure which records you may need and which you can safely toss? Here are some tips to help with your record keeping as well as what papers you will need.
   Keeping records organized will not only make it easier to file your tax return, it will also make it easy to explain an item on your return if the IRS starts asking questions, which in turn may prevent you from having to pay additional taxes and penalties for unsubstantiated items.
   Records that you may consider keeping are:

1. Your checkbook: May help you remember income and expenses that should be reported on your tax return
2.  Invoices, receipts, sales slips, or other written documentation: Any kind of document that says exactly what you paid for.
3. Deductions that you need to document: Alimony, charitable contributions, mortgage interest, child care expenses, and real estate taxes. If you pay in cash, make sure you get a dated and signed receipt showing the amount and description.
4. Investments: Stocks, bonds, mutual funds, etc., need to be determined the basis and the gain or loss when you sell. The record should include the purchase price, sales price and commissions, dividends received in cash or reinvested, stock splits, load charges, and original issue discount (OID).
5. Paystubs: Are great to keep if you have deductible expenses withheld from your paycheck, such as union dues, medical insurance premiums, or 401(k) contributions.
6. Specific records: Form W-2 and 1099, bank statements, brokerage and mutual fund statements, form K-1 (for partnerships), invoices, credit card receipts, canceled checks or other proof of payment, sales slips, home purchase agreements, sales agreements, closing statements, and insurance records.
7. Keep all tax returns: Although you need to keep your tax records for three years from the file date, it is important to remember to keep your actual tax returns, W-2’s, 1099’s, etc, indefinitely. The IRS destroys the original tax return after three years, but you or your heirs may need the information at some point, or you may need it to prove earnings for Social Security purposes.