February 19, 2007

the obligatory post on tax deductions

Tis the season to do your taxes, or find an accountant. Thanks to two moves last year, working in three different states and pure joy at the thought of having a professional wade through the mess that is our tax code, I'll be going the latter route.

Whether you're hiring someone or doing it yourself, here is a list of deductions to remember (courtesy of the March issue of Money):

  • Phone tax credit: Congress recently repealed a 3% long-distance excise tax, allowing people to take a one-time credit covering what you paid between 3/1/03 and 7/31/06. My unprofessional and non-liable advice, take the standard amount ($30-$60), instead of itemizing.
  • Job search expenses: Looked for a job last year? You can deduct stuff like resume paper, travel costs, etc.
  • Investment fees
  • Unreimbursed work expenses: Such as joining a professional association on your own dime.
  • Subscriptions for career-related publications
  • Tuition payments: Also, don't forget about interest paid on your student loans.
  • State tax: You have the option of deducting state and local income tax you paid or the sales tax you paid, whichever is higher. If you didn't keep receipts, use the sales tax table in IRS Publication 600.

1 comment:

Juan Millon (1mil) said...

you are teh awesome, I almost completely forgot about the phone credit! doh!