As you prepare your 2002 tax return, make sure you claim all legitimate deductions.
Charitable contributions. Don’t limit your deductions to donations made by cash or check. Reportedly, 20 million Americans donate items to charity each year but nearly all of them underestimate the value of the items they donate. Under the tax code, you can deduct the fair market value of the items you donate. Moreover, any driving you did as a volunteer for a not-for-profit organization will be deductible, at 14 cents a mile for 2002.
School supplies. Teachers, school principals, and others involved in education can deduct out-of-pocket costs for classroom materials, provided they have receipts, thanks to a new-for-2002 tax break. Up to $250 can be deducted above-the-line, meaning you can take this deduction even if you don’t itemize.
Miscellaneous itemized deductions. Educators who spent over $250 on their students can include the excess as miscellaneous itemized deductions, a category that includes unreimbursed employee business expenses, tax preparation, and subscriptions to investment publications.
The total of these deductions is deductible to the extent it exceeds 2 percent of your AGI. Job-hunting expenses also are included as miscellaneous deductions, which may be helpful after a year of widespread layoffs and extended job searches.