It’s tax season AGAIN, and smart money management rules say you should be looking for those tax deductions that can legally lower you tax bill.

Here are some of the typical deductions that you want to make sure your tax preparer knows about so you get the write-off.

Money Management Deductions - 2011 Mileage Deductions

Business Mileage 515-cents per mile
Charitable Work Mileage 14-cents per mile
Medical & Moving Mileage 19-cents per mile

Money Management Deductions - Dependent Education Expenses

There are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the Hope Credit and the Lifetime Learning Credit, also referred to as education credits.

To learn about these credits, who can claim them, what expenses qualify, and more, visit the website www.irs.gov and in the search bar type in either “child education expenses” or Publication 970.”

For dependents in daycare through middle school, deductible expenses do not include tuition. However, after-school care expenses and a few other types of expenses are deductible. Ask your tax preparer for advice and be prepared to supply the name, address and federal tax ID number or social security number of the care provider.

For each dependent, your tax preparer will need the child’s full name, date of birth and social security number.

Money Management Deductions - Schedule A Itemized Deductions

If your itemized deductions exceed your standard deduction, then you are allowed to take the greater of the two. Here are the standard deductions for 2009 – I’ll update this for 2010 once the data is released by the IRS

$5,700 – Single or Married filing Separately
$11,700 – Married filing jointly or qualified widow(er)
$8,350 – Head of Household

Here is a partial list of Schedule A deductions – for details visit the website www.irs.gov and in the search bar type in “schedule A” and look at the instruction form:

1. Mileage (not claimed as business mileage on another form)
2. Medical expenses
3. Charitable Contributions (there are new record keeping rules that apply for cash donations)
4. Mortgage Insurance premiums for contracts issued after December 31, 2006 (this is NEW!)
5. Mortgage Interest & Points
6. Real Estate Property Taxes (on residences not used for business or rental)
7. Sales tax you paid on retail purchases
8. Investment interest on money borrowed for a property held for investment
9. Job expenses you paid as an employee (if you are not filing Form 2106)
10. Tax preparation fees paid to a professional

Money Management Deductions – Schedule E Deductions for Rental Properties

If you own rental properties then the income and deductions go on Schedule E.

Here is a partial list of Schedule E deductions you can take on rental properties – for details visit the website www.irs.gov and in the search bar type in “schedule E.”

1. Advertising
2. Auto & Travel
3. Cleaning & Maintenance
4. Commissions
5. Legal & Other Professional Fees
6. Management Fees
7. Mortgage Interest
8. Other Interest
9. Repairs
10. Supplies
11. Property Taxes
12. Utilities

While we must pay some taxes, it’s a smart money management practice to use a professional tax preparer and be sure you are getting the maximum allowable deductions to reduce your tax bill.

Sandra Simmons, President of Money Management Solutions, Inc. specializes in helping people manage their money to achieve their money management goals, so be sure and claim your FREE Debt Reduction Solutions Guide