Deductions can lead tax payers into trouble to the point that the need professional tax help to get them out. It is important to use all of the deductions that you can to lower your tax debt but be sure to limit those deductions to ones that are actually allowed by the IRS.

Deductions to Reconsider

Dependent deductions - you can deduct for any dependent that you provide the majority of the support but dependents MUST have a social security number (and be human). A pet that is used as a guard dog for protecting business assets may be deductible.

Household costs - fees associated with your home are not deductible (unless they are included in your real estate tax bill). Separate fees for garbage, utilities or neighborhood associations can not be deducted on your tax return.

Interest payments - interest on personal, unsecured debt (like credit cards) is not deductible. Business credit cards that are used ONLY for business expenses can deduct the interest. Personal credit cards can not write off the costs on the tax return.

Volunteer time and services there are some aspects of volunteer work that are deductible (like mileage and donations) but personal time is not deductible even if you are away from work to do the volunteer work.

Losses or payments covered by insurance damage from a storm, medical expenses or losses due to a burglary are not deductible but items that you do have to pay for out of pocket may be deductible on your next tax return.

Work cloths anything that could typically be worn outside of your work situations is not considered deductable. Items that are used specifically and solely for your job (such as costumes or uniforms) are usually deductible.

It is important to take all of the deductions available to you so that you can limit your tax debt. It is equally important that you take only those legitimate deductions so that you do not end up in a position of owing back taxes to the IRS.