With many people pinching pennies and looking for ways to save money and make do with less, we’ve put together a list of overlooked tax deductions that qualified taxpayers shouldn’t pass up. People are often not aware of all of the deductions that are available to them so take a look at our list and hopefully you won’t be one of the many people that have missed out and paid too much…
1. State sales taxes: If you live in a state that doesn’t have income taxes and you itemize vs. take the standard deduction, this add-on deduction is easy to overlook and will help lower your taxable income.
2. Medical travel: The IRS allows you to deduct mileage for medical travel. This includes mileage to and from doctor appointments as well as airfare for out-of-town medical care. If your medical expenses are high enough to qualify as an itemized deduction, then adding the cost of medical travel can further increase the size of your deduction.
3. Investment expenses: Expenses related to your investments are also deductible such as the cost of safe deposit boxes, investment publications, mileage to visit your investment advisor and more.
4. Charitable contributions: Charitable donations are deductible as long as you have proof of the donation. Donations can be in the form of money or physical items such as clothes and furnishings. Don’t limit yourself to just donations as out-of-pocket expenses to do volunteer work for qualified organizations are also deductible, such as mileage to and from the volunteer activity.
5. Moving expenses: You may be able to deduct out-of-pocket costs of a qualified move related to a new job.
6. Student loan interest: Even if your parents paid the interest on your student loans, you can still take the deduction.
7. Job-hunting expenses: If you’re like millions of other Americans and are unemployed, you may be able to deduct your job-hunting expenses as an itemized deduction. These costs may include:
· Food, lodging and transportation expenses
· Employment agency fees
· Costs of printing resumes, postage, advertising, etc.
8. Energy saving home improvements: Numerous home improvements are eligible for a deduction as well, such as installing a solar heater, energy efficient windows and more.
For more information about tax deductions, please see IRS Publication 17 or contact your local Liberty Tax Service Office.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.