1. Spousal and Child Support

Alimony is the only type of income paid by one ex-spouse to another that can be deducted.

2. Unreimbursed Work Expenses

W-2 employees can only deduct unreimbursed expenses in excess of 2% of their adjusted gross incomes – and only those who are able to itemize their deductions.

3. Above-the-Line Deduction for Roth IRA Contributions

Traditional IRA and retirement plan distributions are taxable as ordinary income so there can be a deduction there.

4. 529 Plan Contributions

There is no federal deduction available for 529 plan contributions.

5. Political Contributions

Cash or property donations to any qualified 501(c)(3) organization are deductible, but that does not include political parties.

6. Homeowners’ Insurance

The only time that this can be deducted is for those who either use a portion of their home for business or for those who own properties that they rent out.

7. Life Insurance Premiums

Life insurance premiums are non-deductible for individuals except for coverage available inside Section 125 Cafeteria Plans and a small amount that can be purchased inside a qualified plan. Meanwhile, group life insurance premiums can be deducted by employers within certain limits.

8. Dependents Whom You Cannot Claim

Many separated and divorced couples race to claim some or all of their dependents each year whether they can or not. The IRS has a fairly clear, albeit complex set of rules that determine who gets to claim which kids. In some cases, one parent will get to claim the dependency exemption, while the other is eligible for the Child Tax Credit or Dependent Care Credit.

However, both parents often try to claim the same dependent in the same year, thus causing the return of the one who files second to be rejected. Those in this category who are legitimately entitled to claim a dependent or dependents must take up their case with the IRS and furnish proof, such as a divorce decree, that establishes their eligibility.

9. Substantial Contributions of Tangible Property to Charities

Cash contributions of up to 50% of adjusted gross income (AGI) are deductible, but property donations have a limit of 20% or 30% of AGI.

Make sure that your property does not exceed these income limits in the year that you give it to your charity. (Being generous has never been more (financially) rewarding!

10. Passive Losses

Passive losses cannot be deducted against active income, such as earnings or investment income.

11. Capital Losses

Although capital losses can be used to offset any amount of capital gains, they can only be deducted against $3,000 of other income each year.

If you try to write the entire balance off at once, the IRS will gently inform you that you will have to prorate the loss for the next 17 years. Unless, of course, you reap a large gain in the future, in which case you can write off as much of the remaining loss as there is against whatever amount of gain you have earned.

This is not an exhaustive list. If you are not sure about a specific expense if it’s deductible or not, visit the IRS website. (Source: Yahoo! Finance)

But I acknowledge that the earnings I received from this Paypal Wishlist campaign in Facebook is a great blessing not only for me but especially for those who have never tried making money online but now did because of their participation in the said campaign by none other than Paypal, Facebook and the product advertisers.

At first, many people were skeptical about the campaign. But there were those who took the risk and promoted the wishlist to their Facebook friends and those who believed and had faith are now reaping the blessings.

I hope that many who have been skeptical about making real money online will now start to reconsider, with caution, the great money-making potential in the internet. Thanks to the Paypal Wishlist campaign in Facebook many now have experienced making money online.

Why the natural way? Yes, I said that because there are unnatural ways. Some of the unnatural ways are automated traffic exchange which is a no-no for Adsense, optimizing the page and the content is one which may result in getting the page on top of search engine results pages (SERPs) but if Google sees that the content is not really what the page is associated with when using particular search keywords and this may result in getting the page penalized by Google.

I still believe in the saying that “Content is King”! I have a little knowledge about SEO but have given up trying it out on pages because when I did this in my other blog (aspacio.net), Google did something with it which pulled it down to lower SERPs. But thankfully I have some pages or blog entries that were really written well (during the times when I did not SEO yet), so now, these are the only pages that appear high on Google’s SERPs. The content placed it their, and I did not have to SEO it.

The best way to get natural, search engine traffic is to provide content in your blog’s niche that will give readers what they need, and they are not necessarily what search engine robots look for. The content will bring readers back to your blog and will naturally propel your site to the top of SERPs. This will naturally increase you Adsense income because of more traffic driven to your site.

The other nice features of Amazon’s electronic book reader is that it is as slim as most magazines, about 1/3 ” and weighs only 10.2 ounces which is slightly lighter than a typical paperback. With this gadget, I can carry a library all around (up to 1,500 books for Kindle and 3,500 for the Kindle DX).

This is a perfect Christmas gift for book lovers because it can cut down future expenses. Books that are New York Times Best Sellers and New Releases can be purchased for $9.99 unless marked otherwise. You can get your Kindle below.

The Paypal Wishlist is integrated in Facebook as an application so you need to sign in to your FB account. Once you sign in and sign up (here or click the image above) and make a wishlist, you can share it in your FB network. Go to your profile and the embedded link in the ‘Paypal Wishlist’ that you see in your profile’s activity is your referral link.  Of course, if you do not have a Paypal account you will be prompted to create one – don’t worry it’s free of charge.

Start sharing now before the market gets saturated. You can make instant money online earn up to $100 simply by sharing your Paypal Wishlist.

Passive income, meaning, trying to increase my income through ads on my sites by increasing the amount of traffic it receives. I was able to increase my income just a little bit, not enough to resign and retire, but enough to augment a part of lost income as online opportunities decreased.

I am trying popular niches and have found some steady traffic from a particular niche but now I am trying to find the niche that has a higher cost per click. Do you have any suggestions for a niche?