newjerseynewsroom.com

BY BOB HOLT

NEWJERSEYNEWSROOM.COM

To understand the complete tax code would take a team of attorneys that Mitt Romney can barely afford. But many of us tend to overlook a lot of available tax deductions that can help our financial bottom line.

According to Forbes, if you make a personal non-business loan that you are not able to collect, you may be able to claim a deduction for the amount, if there is a written agreement between you and the borrower.

Also, you may be eligible to be reimbursed for dues you paid to professional organizations to help you perform your job. And you may be able to deduct depreciation on a computer needed for your job.

For more in finance, check out NJNR's Personal Finance Page.

Kiplinger reminds us that taxpayers can choose the higher of deducting state and local income taxes or state and local sales taxes. You can also include the sales tax if you bought a vehicle, boat, airplane, or home-building materials.

Also you can count smaller charitable contributions that come out of pocket, and a child may be able to deduct up to $2,500 of student-loan interest paid by their parents, as long as the child is not claimed as a dependent.

Yahoo! Finance adds that taxpayers can deduct expenses used in job search if they exceed two percent of the Adjusted Gross Income, and can include health-care insurance premiums they paid if the expenses add up to more than 7.5 percent of the AGI.

AllFinancialMatters asks people to remember accounting fees for tax preparation and IRS audits, treatment for alcoholism and drug abuse, theft or casualty losses, costs of cleaning and laundering services while traveling, contact lenses, eyeglasses, and hearing aids, contraceptives, if purchased with a prescription, and possibly cell phones.

You can also deduct airline baggage fees, and receive credit for making energy-saving improvements to your home.