Documents Needed to Take Common Deductions

Receipts of Moving costs

Only valid if location is 50 miles farther away than current commute, and employed full time for at least ten months at new job. Keep a record of all moving costs, such as: packing supplies, lodging, transportation, storage, and temporary housing at the new location. Cost of food during the move is not deductible.

Proof of Health insurance

The affordable care act now requires most taxpayers to have insurance coverage or there will be a penalty to pay. Health insurance and other medical costs sometimes can be used as itemized deductions or adjustments for self-employed taxpayers as well.

Travel Log of Automobile Expenses

These expenses are incurred by employees, performing artists and fee-based government officials and include the cost of additional driving after arriving at work, but not commuting. The travel log can be a spreadsheet or calendar, and must include the date, number of miles, destination, and purpose of travel.

Student Loan Interest Form

The student loan needs to be for education obtained from an accredited college. The student loan interest deduction is reduced or unavailable for high-income taxpayers.

College Tuition Statement

College tuition may be an adjustment to income, a tax credit, or a business deduction depending on income level, grade level, and purposes of obtaining the education.

Receipts for Teaching Aids and Supplies

A teacher can claim up to $250 for teacher aids and supplies they have purchased for their class. If these expenses were reimbursed (or will be), they cannot be deducted.

Retirement Account Statements

Retirement accounts are included on the tax return and deductible in the year of contribution and may be contributed to until April 15th of the next year. Roth IRAs are not deductible but need to be reported and may entitle the contributor to a Saver’s Credit.

Bank Penalty Charges

Penalties related to cashing in accounts such as CD’s are deductible, not the penalty charged by the IRS for early withdrawal of retirement savings.

Court Documents Showing Alimony Paid or Received

Alimony is a set amount paid each month and required by the court, not including child support. If you paid alimony, you do not have to pay tax on that amount of income. Alimony received is taxable. You will also need the social security number or the other party to report alimony payments.