Americans overpay because they fail to take tax deductions for which they are eligible. Log on http://www.ebservicesva.com/

1. Most Overlooked Tax Breaks and Deductions
Americans overpay because they fail to take tax deductions for which they are eligible. Let’s
have a quick look at even commonly overlooked tax credits and deductions that could be
costing you money.
1. State Sales Taxes – This deduction could be particularly important to you if you live in a
state that does not impose a state income tax. You must choose between deducting
state income taxes or state and local sales taxes they paid.
2. Reinvested Dividends – If you’re like most fund owners, you reinvest these payments
in additional shares of the fund; remember that each reinvestment increases your tax
basis in the stock or mutual fund. That in turn, reduces the taxable capital gain (or
increases the tax-saving loss) when you redeem shares in a taxable account.
3. Child-Care Credit - A tax credit is much better than a deduction; it reduces your tax bill
dollar for dollar. So missing one is even more painful than missing a deduction that
merely reduces the amount of income that’s subject to tax.
4. Out-of-Pocket Charitable Deductions - It’s not just cash donations that are deductible.
Even if you donate goods or use your personal car for charitable work, these are
potential tax deductions. Be sure to get a receipt for any cash donation over $250 and a
detailed receipt for the donation of non-cash goods.
5. Deduction of Medicare Premiums for the Self-Employed - Folks who continue to run
their own businesses after qualifying for Medicare are eligible to deduct premiums paid
for Medicare Parts B and D plus the cost of supplemental Medicare policies or the cost
of a Medicare Advantage plan.
6. Military Reservists’ Travel Expenses – If you are a member of the National Guard or
Military Reserves, you can write off the cost of travel to drills or meetings. If you qualify,
you can deduct the cost of lodging and half the cost of your meals, plus an allowance for
driving your own car to get to and from drills.
7. Gambling Losses - You may be qualified to claim a deduction for gambling losses if
you were involved in legal gambling and won money or prizes during that tax year. This
deduction is only available to the extent of your gambling winnings.
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