Most Missed Tax Deductions

1. Mileage deduction:
   a. Medical miles driven @ $0.10 cents a mile
   b. Charitable miles driven @ $0.12 cents a mile
   c. Excess mileage expenses over amount reimbursed by employer.
2. Use of Per Diem rates for out of town overnight for meals.
3. Non-cash contributions i.e. Clothing to Goodwill
4. Poor record keeping.
5. Investment fees, business magazines and dues.
6. Giving investment stock (appreciated property) that has built in capital gains to charity. You don't have to pick up the gain and you get to deduct the fair market value of the stock as a donation.
7. Keeping up with gambling losses to offset against any winnings.
8. Cost of self-improvement courses taken to help you with your employment.
9. Invest in some tax-free investments.
10. Bunch expenses in alternating years to increase your deduction every other year. i.e. paying real estate taxes January and December to double your tax deduction in one year.
11. Taking advantage of the IRA deduction.
12. Taking child care credit for daycare.
13. Low-income taxpayers have Earned Income Credit available
14. Get a 100% interest deduction by using a home equity loan.
15. Job hunting expenses.
16. Business use of home: storage of product samples.

Filing your personal income tax return by electronic mail can benefit you in several ways:

1. FASTER REFUND - Receipt in three to four weeks or even less. Refunds filed by mail take six to eight weeks.
2. DIRECT DEPOSIT - By having your refund deposited directly into your checking or savings account, you can receive your refund in as little as a week.
3. REDUCES RISK OF AUDIT - All paper tax returns submitted to the IRS are input by an IRS employee who may input several thousand returns per tax season, increasing the chances of input errors. They know nothing about the tax law. In many cases, this may trigger an audit. By having it done right by your CPA the first time, audit risk can be reduced by as much as 433%! This would apply whether you have a balance due or receive a refund.
4. RECEIPT OF RETURN IS VERIFIED - By sending your return through the postal service, you have no guarantee that the IRS will receive it. Receipt of electronically filed returns are verified.
5. IRS e-file IS SAFE - IRS e-file is so accurate it greatly reduces the chance that you'll get "one of those letters" from the IRS. It is virtually error-proof. With IRS e-file, we transmit your return from our computers right to the IRS. CLICK! ZIP. Your return is in. You don't have to worry about your return being lost or delayed in the mail.
6. WHAT ABOUT YOUR SIGNATURE? - You simply sign the signature document, Form 8453, and we will take care of the rest.
7. HOW MANY TAXPAYERS HAVE USED IRS e-file? - IRS e-file has been proven and tested by millions of taxpayers. Most have e-filed again and again since the service was introduced more than 10 years ago. In fact, last year over 20 million individuals chose to e-file their returns. The IRS is going to be doing more each year to encourage taxpayers to use this preferred method of filing your tax return.

Be sure to consult with a tax advisor for proper planning and implementation of tax savings ideas to be sure they are right for you.

C. David Pitzer, CPA, PC
118 Two Mile Pike
Goodlettsville, TN 37072
(615) 851-2727
Fax: (615) 851-8711

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