The dreaded date is almost upon us – April 15th – the day the Taxman comes calling. Whether you are preparing your taxes yourself or seeking professional help – be sure that you have taken all the deductions that you deserve. There are many different deductions in existence that many tax-paying citizens simply do not know about.
Here are five deductions that many Americans fail to take advantage of:
1. Moving expenses to take your first job:
This may apply to you if you have recently made a home in Houston. Houston apartments house many fresh-out-of-college adults who can legally deduct the cost of moving. Although you cannot deduct expenses for job-hunting, once you find that job (it must be more than 50 miles away), you can write off the money you spend getting you and your stuff to your new home. You can even claim the expense of driving your own car to its new location, including .20 a mile, tolls and parking costs.
2. The cost of tax software, tax advice and books:
If you buy a tax program, file taxes online or have your taxes filed by a professional, these expenses are deductible. Be sure to save receipts and take the allowed deduction for each.
3. Certain work-related expenses:
This deduction allowance can really add up if your employer requires medical examinations, which are deductible. Also remember to deduct any tools or supplies that you bought and use for your job, as well as uniforms or protective gear. Another great deduction that many people pass over is for work-related magazine subscriptions.
4. Out-of-pocket charitable contributions:
This includes everything from straight cash donations to mileage costs (.14 a mile) for driving your car for charity. Even supplies bought for charity qualify as a deduction on your tax return. However, charitalbe deductions must be itemized. Keep receipts and mileage logs throughout the year to help fill out this portion of your return.
5. Child Care Credit:
This is not a standard deduction (much better!) it’s a credit – reducing your total tax bill. If your child care costs pass through a reimbursement account at your place of employment, anything that you spend over the allowable $5,000, up to $6,000, qualifies for the credit. In other works, it is possible for you to claim another $1,000 on your taxes, which will cut your taxes even further.
Be sure, when preparing your taxes, to consider all the possible deductions for which you qualify. Tax software programs will prompt you with questions and CPAs or tax preparers should do the same. Here are some links straight from the IRS with more information on deductions:
- Deducting Moving Expenses
- Work-Related Deductions
- Itemizing Charitable Contributions
- Claiming the Child and Dependent Care Credit
It pays to do your homework, check and double check your deductions – and hopefully walk away with a tax refund. Now that you can buy tax programs and file taxes online, making sure these deductions are taken is easier than ever. Still, many people miss out on them every year. Good luck, and here’s hoping you see a hefty return!
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