I’ll be starting a brief series this next week or so detailing and explaining the five big income tax deductions I’ll be taking advantage of for 2006 and asking for some help from you all in finding some lesser known, infrequently taken advantage of tax deductions. The five biggest tax deductions for me (and I invite you to share ones that you know of and will be using but that I haven’t yet mentioned) for 2006 will be:
- Mortgage Interest
- 401k/Retirement Contributions
- Energy Tax Credit
- Charitable Donations
- Lifetime Learning Credit
- Business Expenses
Those five are pretty common amongst most people so I’ll just do a little more research into what is involved in each one, the burden of proof (what docments you’ll need in the event that you are audited), and how much each one is potentially worth.
However, as some of you may know, the wealth is found in the long tail, so if you know of any good (legal!) deductions, regardless of how large or small it is, I invite you to share and I’ll probably take the idea and blow it up into a bigger post. Thanks!