Commuting

In general, commuting costs are not tax deductible if you are a W2 employee. If you are self employed with your home being the principal place of business, then all of your travel relating to your business is deductible. If you are an employee with a job that is going to last one year or less and the job is outside of your metropolitan area, then commuting is deductible. Hauling tools, business calls in the car, or having a business meeting in the car will not convert commuting to deductible business travel.

Getting Social Security at Age 62

Age 62 is the earliest you qualify for social security in most cases. Should you take it at that time? I recommend that you do not if you are healthy and don't really need the additional funds. Why, because you will get a lot more if you wait. You will take a 25% cut from what you would get at your full retirement age which is age 66 for those born 1943-1954. If you can wait until age 70, you will get 8% more each year from age 66 to age 70 or a permanent increase of 32% more for life. Unfortunately, over 80% of those eligible at age 62 start taking social security benefits. Be in the other 20% if you can.

Medical Expenses Paid for Parents

Can you deduct any medical expenses you pay for your parents? The answer is yes if you provide over half their support for the year. Your parents do not have to be your dependent.

Moving Expenses for First Job

If your first job is at least 50 miles from your former home, you can deduct your moving expenses such as the costs of moving your household goods and your travel expenses. A recent college graduate can take advantage of this even without having to itemize since the deduction is an adjustment to income on page 1 of form 1040.