Plan now for Itemized Deductions

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. Once you review the list, contact H&M to set proactive tax planning into motion. We can assist you with your year-round tax needs.

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