Qualified Performing Artists (QPA)
This hidden tax deduction is specially designed for Performing Artists and allows them to claim some of their living expenses to offset their income. If you are a performing artist with no more than $16,000 in adjusted gross income; at least two W-2s, each paying at least $200, from entertainment-related companies; and performing-related deductions equal to at least 10 percent of your adjusted gross income you can deduct your acting-related expenses as an adjusted to your income in additional to the standard deduction. So, if you meet the above criteria you can The Qualified Performing Artists (QPA) tax
Health savings accounts (HSA)
Health savings accounts (HSA) is a pre-tax saving plans specially designed for medical and dental expenses. Your contributions to a qualified HSA are tax-deductible and interest and dividends earned in that plan are tax-free. If you take money out of the plan for qualified medical expenses (see IRS Publication 502 for details) you will pay not tax. To qualify for the Health savings accounts (HSA) Tax deduction you must be enrolled in a high-deductible health insurance plan approved by the Internal Revenue Service and you cannot be covered by HMO or PPO. For 2010 the maximum deduction is $3,050 for single taxpayer, $6,150 for family and $1,000 for catch-up contributions. You report this expense on IRS form 1040 line 25 and IRS Form 8889.
Conclusion
While these two deductions are rarely used they can be beneficial for anyone who meets their requirements.
For more unused tax deductions please review this Complete List of Tax Deductions.
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