Tax Tips

Written by Leslie Holley Wednesday, March 10 2010

Miles driven for charitable purposes are deductible at a rate of 14 cents per mile on Schedule A along with your other charitable donations. I encourage my friends take this deduction on their returns each year and keep up the good work.

Unfortunately many people are in a position where they are incurring a lot of expenses searching for a job. If you are searching for new employment in the same trade or business, these job search expenses are deductible.

Bought a new car this year? Congrats! But did you know that you can take an extra deduction on your tax return for this? This is a 2009-only deduction. For vehicles purchased between Feb. 16, 2009 and Jan. 1, 2010, you can deduct the vehicle sales tax on your return even if you don’t itemize and take the standard deduction.

Cash contributions made to charities providing earthquake relief in Haiti can be deducted on your 2009 tax return if the contributions were made between Jan. 11 and March 1, 2010.

If you are saving for your child’s college via a section 529 plan, your state may offer special tax benefits such as allowing all or part of your contributions to the plan to be deducted on your state income tax return.

Some of my clients have paid off their homes and no longer have mortgage interest expense to deduct and therefore no longer itemize deductions. The Housing Assistance Tax Act of 2008 allows homeowners to claim an additional standard deduction for property tax paid in 2009. The extra deduction is limited to $500 for single filers and $1,000 for joint filers.

Did you do any home improvements this year? If so, you might be eligible for a tax deduction. Any insulation material, exterior windows, exterior doors, certain electric heat pump water heaters, central air conditioners, new roof or even a new stove could qualify. You can take up to 30 percent of the cost up to $1,500 as a deduction on your tax return.

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Leslie Holley is tax manager for Porter Keadle Moore LLP accountants in Atlanta. She provides tax compliance and consulting services to real estate and land developers, individuals, and small businesses.