Self-Employed and on Medicare

You can deduct as self-employed health insurance the medicare premium you pay each month. You can't deduct your spouse's medicare too though.

Gambling Winnings

Gambling winnings are taxable but you can offset them with documented gambling losses. A great way to document your losses is to get a casino player's card which tracks all of your bets. At the end of the year you can request a report of all of your losses from the casino. The losses to the extent of winnings are deducted on schedule A (itemized deductions) of the the tax return.

Medicare Part B Premiums for 2012

Medicare part B monthly premiums are based on your 2010 adjusted gross income on your tax return and your filing status. The monthly premium for singles with less than or equal to $85,000 or for married filing jointly (MFJ) at $170,000 or below is $99.90. The highest monthly premium is $319.70 for singles over $214,000 and for MFJ over $428,000.

IRA Contributions for Seniors

If you will be age 70 1/2 by the end of the calendar year, you cannot make a regular IRA contribution anymore. However, you can still make a Roth contribution at any age as long as you have earned income and meet certain other requirements.

Start Up Costs

Costs that you have before you start operations in a new business can be deducted currently up to $5,000. Any amount over the $5,000 has to amortized over 15 years. Start up costs include such expenses as legal fees to incorporate, market surveys, consulting fees, market research, and advertising the business opening.

Mortgage Insurance

Mortgage insurance premiums on contracts issued after 2006 on your primary or second home qualify as deductible interest expense.  However if your income exceeds $109,000 you lose the deduction. The amount of the premium is reported in box 4 of form 1098 which should be mailed to you by your lender.

Alimony and Child Support

Alimony is taxable income to the recipient and tax deductible by the payer. Alimony must be paid in cash, checks or money orders and must be required by the divorce decree. Child support is not deductible by the payer, and it is also not taxable to the receiver.