Don't miss out on tax deductions

Every year, the IRS dutifully reports the most common blunders that taxpayers make on their returns. And every year, at or near the top of the "oops" list is forgetting to enter their Social Security number at the top of the tax form. But the opportunity to make mistakes is almost unlimited, and missed deductions can be costly. About 46 million of us itemize on our 1040s, claiming nearly $1 trillion worth of deductions. Another 85 million claim more than a half-trillion dollars' worth of standard deductions, and some of you who do probably shortchange yourselves. To prevent that, here are some money-savers not to miss. moneypower@kiplinger.com
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This write-off makes sense primarily for those who live in states that do not impose an income tax. You must choose between deducting state and local income taxes or state and local sales taxes. For most residents of income-tax states, that is a bigger burden than the sales tax, making the income-tax deduction a better deal.<br> <br> The IRS has tables that show how much residents of various states can deduct. (Download IRS tables at apps3.irs.gov/pub/irs-pdf/p600.pdf).<br> <br> The IRS has a calculator on its Web site to help you figure the deduction, which varies by state and income.

1. State sales taxes

(Chris Walker, Chicago Tribune)

This write-off makes sense primarily for those who live in states that do not impose an income tax. You must choose between deducting state and local income taxes or state and local sales taxes. For most residents of income-tax states, that is a bigger burden than the sales tax, making the income-tax deduction a better deal.

The IRS has tables that show how much residents of various states can deduct. (Download IRS tables at apps3.irs.gov/pub/irs-pdf/p600.pdf).

The IRS has a calculator on its Web site to help you figure the deduction, which varies by state and income.