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To
Car Insurance Information Center, Online Auto Insurance Guide -
Products & Services Buying Guide - Top
Common Tax
Return Mistakes
Medical expenses:
• Forgetting to deduct the premium charged for Supplementary
Medicare (Part B).
• Failing to check auto insurance policies and dependent's
student-fee charges at college. Often, there is a separate
charge for medical coverage that can be deducted.
• Overlooking taxi or bus fares to and from the doctor's
office.
• Not deducting parking fees and tolls in addition to the
per mile rate that can be deducted when you use your own car
for medical travel.
• Not including trips to the drugs tore, optician, or other
health facility in medical travel. Interest expenses:
• Not listing the finance charge you incur when you pay
insurance premiums to installments.
• In the case of buying or selling a home, forgetting to
deduct interest-and real estate tax-proration.
• Forgetting to deduct penalties you've paid on premature
saving withdrawals.
• Overlooking the mortgage prepayment penalty assessed
against you.
• Neglecting to add up and deduct credit card finance
charges for the year.
Charitable Deductions:
• Neglecting to calculate charitable mileage for you and
your spouse for church, school, scouting, and other
volunteer activities. Deduction for charitable mileage is
set at 12 et a mile.
• Not deducting the charitable percentage of National
Geographic, Smithsonian, and similar organization dues in
excess of value of subscription received.
• Not including the excess of payments for Christmas cards
and other items purchased from charities over value
received.
• Forgetting to document and deduct out of-pocket expenses
incurred on behalf of charitable activities-such as Scout
leaders' uniforms, donated purchases.
• Not listing excess cost of attending charitable benefits
or of purchasing property from a charity (for example,
public television auction) over value received.
Investment expenses:
• Not claiming stock transfer taxes as an itemized deduction
on Schedule A. Most people simply include it in the cost
basis of their stock because it is included in the net
figure on the confirmation slips they get from their broker.
This deduction is worth up to 2 Y2 times as much if you
treat it as an itemized deduction.
• Not counting newspapers or other publications that you buy
to keep track of investment information.
• Not deducting the fee for a safe deposit box holding your
stocks, bonds, and other income producing assets.
• Not claiming a deduction for investment counseling fees.
• Overlooking the cost of alarm systems and home safes that
are used primarily to protect investments, such as art or
coin collections.
Interest and Dividend income:
• Not checking to make sure the dividend income you are
reporting is fully taxable. Some part of it may be a
nontaxable distribution. Example: the dividend from a
regulated utility, such as Pennsylvania Power.
• Forgetting to elect to report annually interest earned on
Series E bonds owned by children to take advantage of their
low tax bracket.
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Car Insurance Information Center, Online Auto Insurance Guide -
Products & Services Buying Guide - Top
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