J.K. Lasser's 1001 Deductions and Tax Breaks 2015: Your Complete Guide to Everything Deductible

Introduction

Say the word “taxes” and most people groan. There are good reasons for this response: First of all, the cost of paying your taxes annually can be a financial burden. You may feel taken to the cleaners every time you view your paycheck after withholding for federal income taxes (not to mention state income taxes as well as Social Security and Medicare taxes).

Second, the tax law is very complicated and changing all the time. As of March 2013, the Internal Revenue Code (“Tax Code”) had 4 million words. There were only 11,400 words in the Tax Code in 1914, one year after the constitutional amendment authorizing the levy of an income tax. Between 2000 and 2011, there were 3,500 changes. There were major changes in the tax law in 46 of the past 49 years—and this year is no exception! Congress is expected to enact a law extending for 2014 the 55 tax rules that expired at the end of 2013. In addition, new court decisions and IRS rulings appear each day, providing guidance on how to interpret the law.

Third, you have to know what the tax rules are and can't claim ignorance to avoid taxes and penalties. Even if you use a tax professional or tax preparation software to prepare your return, you remain responsible for your taxes. The Tax Court has noted that using software is not an automatic excuse to avoid underpayment penalties.

How can you combat the feeling of dread when it comes to taxes? It helps to know that the tax law is peppered with many, many tax breaks to which ...