Top Five Tax Deductions Not to Forget

If there is one benefit of waiting until the last second to do your tax return, it is knowing all the tax deductions you can possibly take. However, you can always miss some deductions that you forget or simply do not know about. Here are five (plus a few more) tax deductions not to forget!

1. Points on Refinancing: You can deduct both "old" and "new" points on refinancing. New points can be deducted monthly over the life of the new refinanced load. Remaining or old points after a refinance can also be deducted.
2. Medical Health Insurance Premiums: Medical insurance premiums have the potential to be deducted on your taxes. The catch is that your total medical expenses must be over 7.5% of your AGI. The rules are more favorable if you are self-employed (see IRS website).
3. Noncash Charitable Contributions: Remember you can deduct any noncash contributions, including credit card contributions and clothing donations. Just remember to always get a receipt!
4. Clean Fuel Credit: Odds are you probably know about this, but do not forget about it at tax time. For many hybrid vehicles, you get a conservation tax credit of up to $1000 and a fuel economy credit of up to $2400. This depends on the make and model of the vehicle.
5. Tax and Investment Expenses: If you spend over 2% of your total AGI on tax planning and investment expenses, you will benefit from itemizing them. Total everything including broker fees, safety deposit boxes, financial newsletters and magazines, or legal/accounting fees related to tax preparation.

There you go, five common deductions people forget. Some others to consider are casualty deductions, educator and education expenses, and retirement tax credits.