State College Funds

• If you are setting money aside for your child's college education, you may be able to take a tax deduction on both your federal and your state income tax return. The rules concerning college savings accounts and tax deductions vary from state to state, so always check the rules in your state before opening or contributing to an account for your child's future education expenses.
  
  

Business Expenses

• If you run a business in the state, or derive part of your income from freelancing or self-employment, you can deduct expenses you incur in the operation of that business. As with a federal income tax return. it is important to keep careful records of your income and your expenses. Keeping a separate bank account is a good way to keep those business and personal expenses and revenues separate.
  
  

Capital Losses

• If you sold stock, mutual funds or other financial assets during the previous year, you may be able to take a deduction if the total amount of your losses exceeds the total amount of your gains. The laws governing the deductability of capital losses vary from state to state, so check with your own state revenue department for specific instructions and information on how much you can write off against your ordinary income.
  
  

Health Savings Accounts

• You can take a federal tax deduction for the contributions you make to a health savings account; and depending on where you live, you may be able to take an extra deduction at the state level. If you plan to open a new health savings account or contribute to an existing one, you may want to check with the revenue department for your state to see how much of those contributions are deductible.