Deductions and Write-Offs

Municipal and state interest income is tax-free on your Federal tax return. Although you report it for informational purposes, it is not taxed.
Municipal interest is also not included as income if the municipal instrument originates from the state you are filing.
Out-of-state municipal bonds are not excluded on your state income tax return, only your Federal return.

Itemized deductions are amounts paid for certain items, such as medical or dental care, state or local income tax, real estate taxes, mortgage interest, gifts to charities and miscellaneous deductions, such as investment expenses and unreimbursed business expenses. Each category of itemized deductions is subject to limitations. Generally speaking, the IRS gives you a standard deduction, based upon your filing status(married, single,etc.) You are allowed the larger amount of your itemized deductions or standard deduction. Itemized deductions reduce your taxable income.

Points paid on a home mortgage refinance cannot be deducted in the year they’re paid unless the money is used to improve the property which is your primary residence.
Generally, points on a refinance must be deducted over the life of the loan. That means, if you took out a refinanced loan for 15 years, you would have to amortize the points over 180 months.

If the fair market value of your donation is greater than $500. you must complete Section A of Form 8283 – Non Cash Charitable Contributions.
For non-cash contributions of more than $5,000, an appraisal is required. In that case, you must also fill out Section B of Form 8283.
The IRS is aware that certain organizations are issuing inflated blue book value statements regardless of the condition of the vehicle.
You should consider taking a picture of the vehicle at the date of donation for substantiation of the condition.
You may also consider not claiming the full value that was given to you from the charitable organization. Speak to your local CPA for his or her opinion on the amount of the contribution you should claim.

You can only deduct your gambling losses if you itemize your deductions. You would claim gambling losses as a miscellaneous deduction on Form 1040, Schedule A not subject to the 2% limitation. The amount of losses you can deduct cannot be greater than the gambling income reported on your income tax return. It is important to keep an accurate diary or a similar record of your gambling winnings and losses. To deduct your losses, you must be able to supply receipts, tickets or other statements that show the amounts of your winnings and your losses.