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2010 Tax Deductions

2010 Tax Deductions

No matter the year, there are sure to be tax deductions for individuals to take advantage of. This definitely holds true for 2010. There are many tax deductions to consider, with some being more beneficial than others. As a taxpayer, you should learn as much as you can about tax deductions and tax credits to ensure that you lower your income tax liability in as many ways as possible.

Some 2010 tax deductions are traditional in the sense that many people will take advantage of them. They include: gifts to charity, home business expenses, dental and medical expenses (depending on the total and your adjusted gross income), mortgage interest, student loan interest, and casualty and theft losses. Do you qualify for any of these common 2010 tax deductions?

Along with the above, many tax deductions are overlooked time and time again. You never want to forget about any tax deduction, regardless of how big or small it may be. Here are several tax deductions that are commonly overlooked: state sales tax, reinvested dividends, relocation expenses involved with taking a new job, and refinancing points.

It is important to note that tax deductions do not stay the same from year to year. While many deductions are always available, some come and go based on what the government is trying to do. For example, there was a property tax deduction for those who did not itemize for the years 2008 and 2009.

Do you take the standard deduction or itemize your deductions? This is one of the most important questions that you will answer for your income tax return. If you take the standard deduction you do not have to worry about any of those listed above. If you are going to itemize, though, you will add up all your tax deductions. Which number is bigger? The standard deduction or the sum of your itemized deductions?

With hundreds of tax deductions for 2010, make sure you know what you are looking for when tax season rolls around. If you are unsure of the deductions that you qualify for, hire a tax professional who can review your situation and make suggestions. You do not want to miss out on a single deduction. If you do, you are paying more in income tax than you have to.

As you can see, there are common tax deductions as well as those that you have to dig deeper to find. No matter what it takes, be sure to find each and every deduction that you are eligible for.

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