HEADS UP! ITEMIZED DEDUCTIONS MAY BE AHEAD.

Year end may seem far away. But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year.

Following is a list of selected deduction and exclusion items to consider. Don’t use the list as a tax planning worksheet. Rather, think of it as an exercise to help with your tax planning efforts and a good conversation starter for the next time we visit. Bear in mind that various limitations may apply to the items listed.

 

Deductible unreimbursed employee expenses:

  • Business travel expenses
  • Business education expenses
  • Professional organization or chamber of commerce dues
  • License fees
  • Impairment-related work expenses
  • Depreciation on home computers your employer requires you to use in work

Deductible money management costs:

  • Tax preparation fees
  • Depreciation on home computers used to produce investment income
  • Investment interest expenses
  • Dividend reinvestment plan service charges
  • Loss of deposits due to financial institution insolvency

Deductible personal expenditures:

  • Income, real estate and personal property taxes (state, foreign, and local)
  • Medical and dental expenses
  • Qualifying charitable contributions
  • Personal casualty and theft losses

Income excludable from taxable income:

  • Health and most life insurance proceeds
  • Military allowances and veterans benefits
  • Some scholarship and grant proceeds
  • Some Social Security benefits
  • Workers’ compensation proceeds

 



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