Year end may seem far away. But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year.
Following is a list of selected deduction and exclusion items to consider. Don’t use the list as a tax planning worksheet. Rather, think of it as an exercise to help with your tax planning efforts and a good conversation starter for the next time we visit. Bear in mind that various limitations may apply to the items listed.
Deductible unreimbursed employee expenses
- Business travel expenses.
- Business education expenses.
- Professional organization or chamber of commerce dues.
- License fees.
- Impairment-related work expenses.
- Depreciation on home computers your employer requires you to use in work.
Deductible money management costs
- Tax preparation fees.
- Depreciation on home computers used to produce investment income.
- Investment interest expenses.
- Dividend reinvestment plan service charges.
- Loss of deposits due to financial institution insolvency.
Deductible personal expenditures
- Income, real estate and personal property taxes (state, foreign and local).
- Medical and dental expenses.
- Qualifying charitable contributions.
- Personal casualty and theft losses.
Income excludable from taxable income
- Health and most life insurance proceeds.
- Military allowances and veterans benefits.
- Some scholarship and grant proceeds.
- Some Social Security benefits.
- Workers’ compensation proceeds.