These tax savers don't fall logically under any of our other Taxopedia categories. But they can still save you money.
See our other taxopedias.
What's Deductible? -- A to Z
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Alimony. You may deduct the alimony or separate maintenance payments you are required to make to your spouse or former spouse, or to a third party on behalf of that spouse. You do not have to itemize deductions to claim this tax saver. Child support is not deductible.
Elderly and disabled credit. You may be able to take the Credit for the Elderly or the Disabled if you were age 65 or older at the end of the year, or if you are retired on permanent and total disability. Only low-income filers can claim the credit.
Estate tax imposed on an IRA, retirement plan or annuity. If you inherited an IRA or other retirement plan that was subject to the federal estate tax in the original owner’s estate, you deserve a tax deduction that will offset part of the income you report with you withdraw funds from the account. If the value of the IRA added $50,000 to the estate tax, for example, you get to deduct $50,000 as you withdraw and pay tax on the income. Although this is considered a miscellaneous expense, it is not subject to the normal rule that limits deductions for such costs to the amount that exceeds 2% of adjusted gross income.
Gambling losses. You can deduct losses up to the extent of gambling winnings you report as taxable income. You must itemize to use this write-off, but the deduction is not subject the rule that trims miscellaneous expenses by 2% of your adjusted gross income.
Impairment-related work expenses. If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning and working, you can deduct your impairment-related work expenses.
Legal fees. Legal fees related to producing or collecting taxable income or getting tax advice are a miscellaneous itemized deduction on Schedule A allowable to the extent that this deduction and your other miscellaneous deductions exceed 2% of your adjusted gross income.
Making work pay credit. As part of the 2009 economic stimulus plan, Congress enacted the making work pay credit. Most workers received the benefit via reduced withholding on wages during 2009 and 2010. However, you must claim the 2010 credit ($400 for singles/$800 for married couples) on your 2010 tax return to bring your tax bill down in line with the reduced withholding. The credit is phased out for those with income over $75,000 ($150,000 on joint returns filed by married couples).
Tax preparation fees. You can deduct tax preparation fees -- including the cost of tax software -- in the year you pay them. The deduction is treated as a miscellaneous itemized deduction on Schedule A that is allowable to the extent that it and your other miscellaneous deductions exceed 2% of your adjusted gross income.
Unrecovered investment in pension plan or annuity. If you die before your entire investment is recovered tax free, any unrecovered amount is allowed as an itemized deduction on your final income tax return.
Unemployment compensation. Generally, jobless pay you receive is fully taxable. A break that allowed up to $2,400 to be tax-free in 2009 was not renewed for 2010.
See our other taxopedias.
-
Why Prepaying Your Retirement Dreams Might Be a Financial Game ChangerHe bought his retirement home more than a decade before he plans to retire. Was it the right move?
-
My $1.2 million vacation home has a $360K mortgage. I don't need my upcoming $45K RMD. Should I use it to pay down the mortgage?We asked wealth planners for advice.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
10 Retirement Tax Plan Moves to Make Before December 31Retirement Taxes Proactively reviewing your health coverage, RMDs and IRAs can lower retirement taxes in 2025 and 2026. Here’s how.
-
The Original Property Tax Hack: Avoiding The ‘Window Tax’Property Taxes Here’s how homeowners can challenge their home assessment and potentially reduce their property taxes — with a little lesson from history.
-
Three Critical Tax Changes Could Boost Your Paycheck in 2026Tax Tips The IRS predicts these tax breaks may change take-home pay in 2026. Will you get over $1,000 in tax savings?
-
What’s the New 2026 Estate Tax Exemption Amount?Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
IRS Updates 2026 Tax Deduction for People Age 65 and OlderTax Changes Adjustments to the extra standard deduction can impact the tax bills of millions of older adults. Here are some new amounts to know for 2026.
-
IRS Reveals New 2026 Child Tax Credit and other Family Credit AmountsTax Credits Key family tax breaks are higher for 2026, including the Earned Income Tax Credit and the Adoption Credit. Here's what they're worth.
