Make the Most of "Misc." Deductions Today

Even though the April 15 tax-filing deadline seems far away, you have less than one month to make the most of the available tax-cutting moves for 2008.

It's your last chance to ...

• Max out pre-tax retirement plans.
• Do tax-loss selling before Dec. 31.
• Defer income if in AMT territory.
• Donate to charity (remember to get proper documentation).
• Establish a Keogh.
• Contribute to a 529 college savings (in some states).
• Spend Flexible Spending Account dollars (for some plans).
• Call your mother this calendar year.

Most importantly, it's your final opportunity to identify potential deductions and make sure you're set to realize them on your taxes come April. Some everyday expenses may be tax-deductible if, combined, they exceed 2% of your adjusted gross income (AGI). So, for example, if your AGI is $50,000 and you can find $1,200 in so-called "miscellaneous deductions," that's a $200 deduction -- and $50 off your tax bill!

Here are some oft-overlooked day-to-day expenses to wrangle for your '08 taxes:

Investment expenses: The investment world is fond of charging you for service any way it can. Lucky for you, those expenses are deductible. Add up all the fees you paid directly this year, such as management fees, dividend reinvestment fees, safe-deposit boxes, investment periodicals (magazine and newsletter subscriptions), and annual account fees. Many brokerages charge IRA customers an annual custodial fee, which is automatically deducted from the customers' account. Instead, pay the custodial fee by check (leaving more money in your IRA to grow) and add the annual fee to your miscellaneous deductions.

Tax-preparation expenses: Your CPA may be a lifesaver, but don't let that stop you from deducting what you pay him or her to work a little tax magic. Similarly, if you are a do-it-yourselfer, the cost of your tax-prep software counts toward your miscellaneous expenses.

Business expenses not reimbursed by your boss: Job-related costs can add up, particularly if your employer doesn't pick up the tab. Keep track of what you pay out of pocket for things like union or professional group dues, professional books/subscriptions, parking, supplies, depreciation on work-related phones/computers, work-related phone calls over a personal line, and business-related travel and meals (usually limited to 50% of cost). Similarly, costs incurred while you're looking for a new job in your current line of work, including travel, resume preparation, and postage, are deductible.

Hobby expenses: If you have a hobby that brings in money, then be sure to keep track of expenses related to your craft habit.

Fool.com columnist Dayana Yochim's filing system is based primarily on the "Misc." category.