Tax return preparation is very difficult for most people even if you are going to a trained professional like my self. Often deductions are missed simply because the taxpayer has not thought of them and the tax preparer has not asked. Here is a list of the most commonly missed tax deductible items.

1. The medical mileage deduction for 2007 is $.20 per mile and $.19 per mile for 2008. Trips from home to the doctor and the hospital are included when calculating total miles for the calendar year. Sometimes a client does not know off hand how many miles this actually is but when you start adding them up it can create a very large deduction.

2. Mortgage interest paid on a 2nd mortgage is often overlooked. If you have a motor home with a functioning kitchen and bathroom you are entitled to this often over looked tax deductible item.

3. Charitable deductions are made and often forgotten about. Sometime we just cannot remember the box of cookies we bought from our neighbor’s daughter who is with girls scouts as well as many other donations throughout the year. Add them upyou will not be sorry.

4. If you had to move during the year for work then do not forget the moving expenses. You must meet certain tests so be sure to discuss this with your tax advisor. Tax deductible items include $.20 per mile, actual out of pocket expenses for oil and gas. Also include expenses for storage of household goods and lodging expenses.

5. Deducting alimony can provide an annual tax reduction of $3,360 per year assuming $1,000 paid per month and you are in a 28% tax bracket. Do not pass this one up as the alimony is also taxable to your ex.

6. Interest paid on student loans is deductible. Many times after graduation you take a new job and your address changes. The year end statement showing the amount of interest paid for the calendar year gets misplaced. Therefore, if you paid student loan interest or have a child that did do not pass this tax deductible item up.

7. State income taxes that are withheld on your W-2 are deductible. In addition, do not forget the amount of taxes paid to your state for a prior year filing.

8. Loans made to family and friends who have failed to repay you are deductible as worthless debts on Schedule D. You are limited to $3,000 per year until the full loss is taken. But if you have capital gains then the whole loss can be taken up to the amount of the capital gain plus $3,000.

9. If you are self employed there are countless deductions but for the purpose of this article do not be afraid to take a loss on line 12 of your 1040 resulting from your Schedule C. If I did not make any income from my self employed venture can I take a loss? Yes absolutely.

10. Often clients will rent a home to a family member and will not want to report the rental income. This is a big mistake because it is illegal but you also miss out on legitimate tax deductions that when properly totaled create a loss on your 1040 that goes against income from other sources.