Educator expenses - This deduction applies to K – 12th grade educators, and is limited to $250 of documented supplies per qualified taxpayer. Expenses exceeding $250 can be taken as a miscellaneous itemized deduction.
A health savings account - Health savings accounts, or HSA's, are accounts set up exclusively for paying the qualified medical expenses of the account beneficiary or the beneficiary’s spouse and dependents. Health savings accounts are designed to accompany specific insurance policies with high deductibles. Be sure to discuss this with your return preparer to see if you qualify.
Moving expenses - If you moved more than 50 miles for employment purposes you may be entitled to deduct the cost of moving your-self and your household goods. You may deduct qualified out-of-pocket expenses or an employer reimbursement that was included in your W-2 form. If you received a non-taxable reimbursement, you cannot deduct the expenses.
Self-employment tax - If you are a sole-proprietor, active partner or have miscellaneous income subject to self-employment tax, you can deduct half of the self-employment tax.
Self-employed pension plans - You can deduct all qualified contributions to self-employed SEP, SIMPLE, or other qualified plan. See related articles under "retirement plans" for limitations and details.
Self-employed health insurance deduction - Sole proprietor's, active partners with net business income, and greater than than 2% shareholders of an S-corporation may deduct the cost of health insurance for themselves and their families. The deduction is limited to net profit or, in the case of an S corp shareholder, Medicare wages reported on the W-2 from that S corp. Qualified long-term care insurance premiums, subject to age limitations, are also deductible.
Penalty on early withdrawal of savings - These penalties, which are typically incurred when you cash a CD prematurely, are deductible. You will find this fee on your form 1099-INT.
Alimony - Court ordered alimony paid is deductible, subject to certain rules. Your return must include the Social Security number of the recipient.
IRA deduction - If you have compensation or self-employment income and are not covered by an employer plan, or meet certain income limitations, you may deduct contributions to a traditional IRA. For tax year 2014 you are limited to $5500 ($6500 if you are over 50). Roth IRA contributions are not deductible but possess other tax benefits.
Student loan interest - Up to $2,500 of the interest paid on a qualified student loan is deductible (subject to certain income limitations). You should receive a Form 1098-E from the entity to which you paid the student loan interest.
Tuition and fees deduction - Up to $4,000 of higher education tuition and fees can be deducted by taxpayers with an AGI under $80,000 if single, or $160,000 if married filing jointly. It may be more advantageous for you to claim either the American opportunities credit or the lifetime learning credit. All of these education benefits have different limitations and requirements. . You can find an in depth article on the credits under the education category of this blog. Please discuss this with your tax advisor to claim the credit or deduction that is most advantageous for you