There are literally hundreds of ways you can use tax deductions to decrease your overall tax burden. Unfortunately, many people don't even know these deductions exist, missing out on thousands of dollars in potential savings each year.
First, it's important to actually remember to file your tax return-- you have until April 15 to do so, or you'll face a late filingpenalty. You may also miss out on the opportunity to receive a refund. In 2009, the IRS got to keep more than $917 million in refunds, since nearly 1 million taxpayers didn't file their tax returns.
Tax deductions go much further than charitable donations and mortgage interest. Here are five things that you probably didn't know were tax deductible.
1. Fees and costs to actually do your taxesThe IRS allows you to deduct the cost of preparing your taxes as a miscellaneous itemized deduction, on the return for the year in which you pay them. For example, if this year you spend $300 to prepare your tax return for 2013, you would be able to deduct $300 for your 2014 return.
This includes the cost of tax preparation software programs, such as H&R Block or TurboTax, any fee you pay for the electronic filing of your return, tax planning advice, the cost of tax-related books or materials, legal advice, fees for a tax audit, and more.
2. Losses from Ponzi-type investment schemesThe phrase "Ponzi scheme" has unfortunately become well known to the public following the Bernard Madoff scandal in 2008, as thousands of taxpayers were affected.
Thankfully, the IRS does offer some relief to the victims of Ponzi schemes.
Added in 2009, the IRS says you can claim a "theft loss due to a Ponzi-type investment scheme" on Form 4684. Taxpayers claiming a loss should mark "Revenue Procedure 2009-20" at the top of the form.
read the rest at http://www.fool.com/personal-finance/taxes/2014/03/30/5-tax-deductions-that-are-typically-overlooked.aspx
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