Like most taxpayers, when filing your tax return you want to get the largest return amount possible. Most of us believe we are so thorough and that we are detecting every deduction possible that we qualify for. The truth is, many of us are missing out on several tax deductions. Below, you will learn about the ten most over looked tax deductions taxpayers commonly miss out on when they file taxes at tax time. Read carefully about these deductions because chances are – you may be eligible and missing out on some of these deductions yourself.
1. Charitable contributions paid out of your pocket: This may include ingredients that you purchased out of your own pocket in order to feed the needy or if you traveled somewhere to volunteer for a disaster relief situation.
2. Child Care Credit: If you receive child care assistance through your place of employment this credit is easy to miss. You can receive up to five thousand dollars for child care that is reimbursed through your place of employment. Other child care programs can qualify for up to six thousand dollars in tax credit if your child care is not in a place of employment reimbursement program.
3. Refinancing: If you have recently refinanced your home, you are most likely eligible to receive refinancing points. This deduction does require you to deduct the refinancing points over the entire life span of the loan. For instance, if you are financed for a twenty year loan then that means it is twenty dollars per year for each one thousand dollars that you have paid.
4. Military Reserve Travel Costs: If you happen to be a member of the military reserve program or a member of the National Guard, you may be eligible to receive a deduction for traveling expenses. This can be used when you are required to travel to drills, other meetings or events. The requirements just state that you must travel more than one hundred miles in order to be eligible for this deduction and you must be at the destination over night.
5. Moving to a new job: If you were required to move fifty miles or more in order to take a new job then you may be eligible for this deduction. If eligible, you can deduct the amount it cost to relocate and travel to the new destination. This also includes a cents-per- mile traveled amount. You may also deduct the amount of parking fees or other tolls.
6. Student Loans: If you are a parent and you paid the interest on your child’s student loans you could also receive a tax deduction. The IRS views this as giving money to the dependent and the dependent pays on the loan. A child who isn’t claimed can qualify to deduct up to twenty five hundred dollars.
7. College Tuition: If you helped pay tuition for yourself, spouse, or dependent you could be eligible to deduct up to four thousand dollars.
8. Educators’ Expenses: If you are a teacher you may be eligible to deduct up to $250 dollars if you spent your own money in order to purchase classroom supplies or books.
9. State Implemented Sales Tax: To receive this deduction, you must choose either a deduction of state income tax or state sales tax.
10. Jury Duty: If you were summoned to jury duty and your place of employment paid you for that day, but required you to hand over your jury duty compensation to the company you may be eligible for this deduction.
If you exam your tax returns carefully, you may find you have missed a deduction, or maybe a few. If you qualify for any of these tax deductions, make sure you take them.
Posted by JK Harris