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What you may deduct:

  • Alimony paid under the rules of Chapter Thirty-seven
  • Amortized bond premium
  • Appraisal costs for donated property
  • Bad debts subject to limits for non-business loans
  • Bank deposit loss in insolvent bank
  • Burglary losses
  • Business expenses
  • Business gifts up to twenty-five dollars
  • Business use or rental of a car
  • Capital loss within limits
  • Casualty losses within limits
  • Charges for services on rental property (e.g., water, sewer, trash)
  • Charitable contributions
  • Christmas presents and other holiday gifts to employees, clients, or customers up to twenty-five dollars per person
  • Clothing, uniforms, costumes, laundering, and cleaning
  • Condominium owner's interest and real estate taxes
  • Convention (business or professional) expenses
  • Depletion of oil and gas wells, other natural deposits, and timber
  • Depreciation of home computers or cellular telephones, subject to restrictions
  • Depreciation of leasehold improvements
  • Depreciation of rental building
  • Depreciation of rental property furniture and appliances
  • Disaster losses
  • Education, including cost of tuition and books, if education is required to keep your job or improve job or professional skills
  • Embezzlement losses
  • Employment agency fees
  • Foreign housing costs if self-employed, within limits
  • Foreign income tax and property taxes
  • Gambling losses to extent of gambling gains
  • Half of self-employment tax liability
  • Health-care insurance premiums
  • Home mortgage interest
  • Impairment-related work expenses
  • Income tax return preparation fees
  • Individual retirement account (IRA) contributions, within limits
  • Investment interest, within limits
  • Job-search expenses
  • Keogh plan contributions, within limits
  • Legal expenses
  • Long-term care insurance and services
  • Losses on small-business stock
  • Magazine subscriptions used for business or professional purposes
  • Malpractice insurance
  • Medical and dental expenses, within limits
  • Medical savings account (MSA) contributions
  • Moving expenses to new job location
  • Nurse wages
  • Points paid on purchase or improvements of principal residence
  • Real estate taxes
  • Rent for business property
  • Repairs of business or income-producing property
  • Schooling costs for a mentally or physically handicapped dependent
  • Simplified Employee Pension (SEP) contributions, within limits
  • Standard deduction
  • State and local income taxes
  • State and local personal property tax
  • Student loan interest
  • Taxes that are business expenses
  • Tools used on your job having a life of less than a year
  • Travel expenses necessary to maintain property
  • Travel costs to take education courses
  • Travel costs to obtain medical care
  • Work clothes and uniforms
  • Worthless securities

Note: Each year, some of these may change.  Consult your tax professional for updates.