No. 3: Relocating
There are no deductions or tax write-offs if you've simply picked up and moved cross-country, but you can get some tax relief if you've moved more than 50 miles for a new job.
According to the IRS, you may be able to deduct your reasonable moving expenses but not any expenses for meals.
Besides the 50-mile "distance test," the IRS also requires a "time test." You must work full-time for at least 39 weeks during the first 12 months immediately following your move. The IRS offers exceptions to the time test in case of death, disability and involuntary separation, among other things.
Just remember that you cannot benefit twice from moving expenses. Many companies offer reimbursement for moving and travel expenses incurred by new employees, so if your boss has paid, Uncle Sam doesn't want to get the bill, too. This only applies if you've moved for a new job on your own dime.
No. 2: Business meals
PeopleJam.com advises consumers to consider business meals for deductions and write-offs.
For example, if you're taking a candidate for a lunch interview or entertaining sales clients at dinner, the bill might be deductible under certain scenarios.
Of course this only applies if you pick up the tab and business is actually discussed.
The most important thing to remember about business deductions and write-offs for taxes is that only half the bill is usually eligible for deductions, and this will vary depending on how much you spend and whether the meal seems legitimate.
As with relocation expenses, you also cannot claim meal costs on your taxes if your employer reimburses you for them.
Beware of going overboard though. The IRS forbids deductions of lavish and extravagant meals, and if you do get audited it may prove difficult to show the necessity of such expensive meals.
No. 1: Mileage expenses
If you use your vehicle for business, you'll want to keep one number in mind: 50.
That's how many cents each mile of your business-related driving -- not including your daily commute -- is worth as a write-off for your 2010 taxes.
But the IRS doesn't limit driving write-offs to just business traveling. You can also claim 16.5 cents for medical trips and 14 cents for each charity-related mile you drive, as long as you are making a dedicated trip to volunteer for a qualified nonprofit.
But the business driving expenses you can deduct don't stop with some help covering the ever-increasing cost of tax. You can also deduct any parking fees and tolls you pay as part of the business use of your vehicle.