7 Hidden Tax Deductions

Did you buy a new car, or pay tutition this year? These and other hidden deductions could sizeably reduce your taxable income!

New car

Bought a vehicle between Feb. 17 and Dec. 31, 2009? Deduct the tax.

Moving expenses

Deduct expenses for a move of more than 50 miles. Individual retirement account: Deduct money placed into a traditional IRA.

Student loan interest

Up to $2,500 is deductible

Tuition and fees

Take the American Opportunity or Lifetime Learning credit but not both.

Classroom expenses

Teachers deduct up to $250.

Self-employment

Deduct half of self-employment tax, health-insurance costs and retirement contributions to a simplified employee pension (SEP) or Simple or solo 401(k) plan.

Health Savings Account

Individuals deduct up to $3,000, and families $5,950.

From allyou.com/ Posted by Mags