How One Of The Most Famous Bank Robbers Of All Time Will(ie) Teach You How To Save On Your Taxes!

On March 14, 1950, the FBI released their very first TOP TEN MOST WANTED CRIMINALS list.  On the 58th anniversary, we are releasing our TOP TEN MOST OVERLOOKED TAX DEDUCTIONS. (Adjusted for 58 years of inflation, we’ve expanded the top 10 deductions list to 12)!

Willie Sutton, one of the most famous bank robbers of all time, was on the FBI’s first TOP TEN list.  Sutton is famously (and probably falsely) known for answering a reporter, Mitch Ohnstad, who asked why he robbed banks by saying, “because that’s where the money is.”  The quote formed the basis of Sutton’s law, often taught to medical students. 

Now, what do Willie Sutton and Sutton’s Law have to do with the Top Ten Most Overlooked Tax Deductions?

Simple…That is where YOUR TAX MONEY IS!  

It is truly criminal, how much money taxpayers leave behind when filing their taxes!

According to the IRS, every year taxpayers leave big bucks “on the table” when they file their returns.  Here’s a list of common deductions and credits that are overlooked.

Educator’s expenses.  If you are a teacher, or a teacher’s aide, you can deduct up to $250 that you spent out of pocket in 2007 for books and classroom supplies.  Put the deduction on line 23 of the 1040 – you don’t need to itemize to receive this deduction.

College tuition.  Is your income is too high to qualify for the Hope or Lifetime Learning credit? But you still paid college tuition in 2007 for yourself, spouse or a dependent?  You may still qualify to deduct up to $4,000!  If you take courses to maintain or improve your job skills, you can deduct the fees as tuition and fees expenses!  You can claim this deduction whether or not you itemize. 

Student loan interest.  More education benefits!  In the past, if  parents made payments on a student loan for their child, no one benefited.  The reason:  you had to be liable for the loan in order to claim the deduction (the parents weren’t liable because the loan was in the child’s name).  Now, the IRS will treat the payments as money the parent gave to their child, who paid the debt.  So, if your child is no longer claimed as a dependent on your return, and you pay a student loan for them, your CHILD can qualify to deduct up to $2,500 of the student loan interest paid.

Child care credit.  If you paid someone to care for a qualifying individual so you (and your spouse if you are married) could work or look for work, you may be able to claim a credit for your child and dependent care expenses.  There is a maximum dollar limit of dependent care expenses you can use for this credit.  The amount of the maximum dollar limit depends on the taxable year and the number of qualifying children.  These dollar limits must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income.

Military reservists travel expenses.   Are you a member of the National Guard or military reserve?  If you travel more than 100 miles and are away from home overnight to attend drills or meetings, you may qualify for a deduction of travel expenses.  Here’s what you can deduct if you qualify:  cost of lodging; half the cost of your meals; 48.5 cents a mile and parking and tolls if you drove your own vehicle.  You do not have to itemize to take these deductions!

Out of pocket charitable contributions.  We’re not talking about donations you made of goods or money to charitable organizations here.  We’re talking about little, often overlooked items.  Did you provide postage for a fundraiser?  Does your non-profit organization hold an annual fund-raising dinner, and do you provide ingredients for that dinner?  The postage and the cost of the ingredients are deductible!  And the miles driven between your home and the organization’s office are also deductible – you can either deduct the cost of gas and oil, or you can deduct 14 cents per mile driven!

Refinancing points.  If you’ve refinanced your mortgage, you can deduct a pro-rata share of the points paid over the life of the loan. 

Paid state tax.  If you owed state tax at last year’s income tax filing, remember to include that amount in your state-tax deduction, along with state income taxes withheld or paid as estimated quarterly payments.

Professional dues and fees.  Dues you pay to professional organizations and subscription fees for job-related professional periodicals can be deducted.  If you are a member of a union, you can deduct your union dues.

Boats and cars.  If you own a boat, car, truck or van, you can typically deduct the personal property tax you paid.

Alimony.  If you paid alimony, you can deduct this on your return.  If you paid legal fees to collect owed alimony, you can deduct this expense on your return.

Tax preparation fees.  Yes, if you paid to have your income taxes professionally prepared last year, you can deduct that expense this year!

Want to make sure you don’t leave money on the table?  Visit your local PRO-TAX office to make sure you don’t fall victim to the Top Ten Most Overlooked Tax Deductions.

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