• Grades K through 12 teachers, instructors, counselors, principals and aides can deduct up to $250 of out-of-pocket expenses as an adjustment to income.
• To qualify, the taxpayer must have spent at least 900 hours during a school year as an educator.
• Qualified expenses include amounts paid for books, supplies, computer software and equipment and other equipment used in the classroom.
• Amounts in excess of the $250 can be deducted as unreimbursed employee business expenses on Form 2106. Unreimbursed employee business expense is subject to 2% of adjusted gross income.

• The IRS allows a deduction only for a move "closely related" in time to the start of work at the new job location.
• The taxpayer must also meet one of two tests: distance test or time test.
• Distance test can be met if the taxpayers new job location and former house are at least 50 miles from the old job location and former house.
• To meet the time test, the taxpayers must work as a full time employee at the new location for at least 39 weeks in the 12 month period following arrival.Deductible expenses include cost of moving household goods and personal effect and travel expenses.

The activities listed may allow you to deduct for charitable contributions. Ask your tax preparer.

• Donate Your Car to Charity
• Documenting Charitable Contributions
• Excess Charity Can Follow You into Next Year
• Itemizing for Non-homeowners
• Bunching Charitable Deductions
• Less Obvious Donations Add Up
• Keep Track of Holiday Donations
• Paying More for Charitable Items Counts

Searching for a job can be a frustrating process, but the tax rewards can be big. Don't miss out on these money-saving deductions.

Today changing jobs is commonplace. Cut backs, layoffs and corporate ladder climbing can all lead to a search for other employment. But the once dreaded job search now has an upside - tax deductions! Job search expenses can be deducted as miscellaneous itemized deductions if you look for a job in the same field at essentially the same level as the one you left. The expenses are deductible even if you don't get the job.

You can claim job-seeking expenses as long as the amount of all miscellaneous itemized deductions is more than two percent of your adjusted gross income. Job seeking deductions are also subject to the overall limitation on itemized deductions based on AGI threshold amounts.

Deductions that can be taken may involve:

1. Employment agency fees
2. Resume preparation
3. Travel for job search
4. Legal fees protecting employment status

• Generally, early withdrawal penalties are reported to the taxpayer of Form 1099INT or Form 1099OID.
• These penalties are assessed when the taxpayer withdraws their investment, usually from a savings or certificate of deposit account.
• Do not deduct this amount from interest income reported.

• Contributions to an IRA may or may not be deductible, depending on each individual circumstance.
• However, earning from a qualified IRA are tax deferred until distributed to the taxpayer.
• Contributions must be made by April 15 of the current year to be a deduction on the prior year return.

• Taxpayers may deduct up to $2,500 of interest paid on qualified education loans for college or vocational school expenses.
• The deduction is available on qualifying loans for the benefit of the taxpayer, spouse or dependent at the time that the debt was incurred.

• Taxpayers may be able to claim a tuition and fees deduction for qualified higher education expenses.
• The allowable deduction is based on the tax year and taxpayers modified adjusted gross income.
• Make sure that tuition and fees are checked both ways - as an adjustment to income or as a nonrefundable credit, to see which best benefits the taxpayer.