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[quote=Anonymous][quote=Anonymous]I'm starting this thread so people can alert each other to possible tax deductions & credits we all might be missing.  It seems I discover a new one every year.  Mine are below.  Please post if you have others.

1. Childcare tax credit.  I've been deducting nanny and babysitter costs.  But I just realized this year that I also can include Aftercare costs from my kids' schools, and also the cost of preschool for my youngest!   [b]It is more complicated than that. for one thing, you cannot deduct these expenses -- there are only credits and exclusions. there are income limitations. you can claim the dependent care credit or use a dependent care FSA, but not both. You must have the tax ID for the provider. And there are limits.[/b]

2. Bad debt deduction.  It's not too often, but every few years I seem to have some unresolved dispute with a contractor or other service provider.  Some of these can be treated as bad debts which generate a deduction. [b]You're confusing me. You have delinquent contractors who owe you money? That doesn't seem like a very common situation to me.[/b]

3. Charity deductions.  Make sure to catch them all.  I always discover extra ones when I review my checkbook each year.  I should create a system to track these things.  Anyone have a good system I can copy?  Also, I really should figure out how to document my non-cash donations over $500, because I'm donating way more than I claim every year. [b]you need a receipt provided by the charity for anything over $250. just keep track of your receipts. Also, you can only deduct charitable donations if you itemize[/b]

4. State sales tax deduction.  I just discovered this one.  You can deduct state sales tax you paid as an itemized deduction.  You need to have receipts, which is a huge hassle.  But IRS has an online calculator that lets you get a rough (likely low) estimate.  I was surprised at how big the number is.  Anyone got any tips for keeping better track next year?  I suspect I don't really need actual paper slip receipts, but just good documentation.  So maybe there's an app that lets me enter sales tax as I pay it, or maybe there's some function Amex provides online to calculate it for me off my credit card payments.  Any ideas? [b]As you already noted, you can only claim this in lieu of the income tax deduction. Unless you live in a state without an income tax (Texas, Florida, Wyoming, Washington, etc.) this really doesn't help people in our area.)[/b]

Any other tax tips from smart savers out there?[/quote]

I know you mean well, but please refrain from giving tax advice here.[/quote]

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