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The Internal Revenue Service (IRS) allows taxpayers to make certain deductions regarding the total amount of tax they will be expected to pay during any tax year. These legally allowed deductions are clearly enumerated by the IRS and can only be applied in certain circumstances since not all of them can be claimed by an individual or business. Some of these allowable IRS deductions state taxes, charitable donations, certain health-related costs and expenses incurred during the process of looking for a job. Other types of IRS deductions include jury payments that may have been withheld from employees and certain types of estate taxes.
An inclusion in the list of IRS deductions comes from the state sales taxes that may be deducted by residents of states that do not collect income tax from their legal residents. Usually, the individual will have the option of deciding whether to deduct either sales or income taxes, and not the two. For example, sales taxes attached to the purchase of certain items may be deducted from the annual taxes as part of allowable IRS deductions. People who donate to charity have the opportunity of killing two birds with one stone in the sense that they can both give to the charity of their choice and still claim deductions from their annual taxes to the allowable limit for such donations for the year. These charitable donations are not limited to donated materials, because people who volunteer to work for these places can also deduct any expenses incurred during their work, such as parking fees and gas reimbursements.
Other types of allowable IRS deductions include certain expenses incurred by an individual during the process of looking for a job. Such IRS deductions include any costs expended by the individual in order to move to a new job that falls within an allowable radius. The self-employed are also allowed to make certain IRS deductions, such as the cost for the purchase of certain equipment like copiers and computers that will be utilized for the job. Certain enumerated health expenses may also be included in the IRS deductions, including physician consultation fees and the money spent on transportation to receive the treatment, such as bus fares or money spent on gas. People whose jury duty payments were appropriated by their employers may also include these deductions in their annual taxes.
Can I deduct my mileage to and from work if I file a 1099 at the end of the year?
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