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.