Overlooked Tax Deductions which can Help you Save Money
With April rapidly approaching many people’s minds are on taxes. Nobody enjoys tax time, and often rush through filling out their forms and just opt for the standard deduction. Writing in additional deductions can be difficult because it requires itemizing your deductions which just isn’t worth the trouble for many. However, there are some often over looked tax deductions which can save you money.
While it is commonly known that you can write off a move when you take a new job, many people don’t realize that you can write it off even if it is your first job. Recent college graduates, who often need every penny, who moved away after college should be able to write off at least some of those expenses.
Job Hunting Expenses
In addition to a tax deduction to help you move, there is also a deduction if you are job hunting while employed. If you are hunting for a new job within the same field it may be possible to qualify for this tax deduction. This tax deduction will cover such things as job agency fees, the cost for printing and mailing application letters, and travel expenses.
There is a tax deduction for anyone who has made an investment into their retirement portfolio. As long as you made an investment into a retirement portfolio you can get credit for up to 50% of the first $2000 invested, or 1000 dollars.
Tax Credits for Energy Efficient Improvements
If you made any energy efficient home improvements in the last year, you may qualify for the federal tax credits for consumer energy efficiency. These credits are available to people who added Energy Star products to their current residence. The amount of credits available varies depending on the devices installed and the state you are living in.
You have to spend 10% of your adjusted gross annual income before you can qualify for medical tax deductions, however this amount is a little easier to reach if you remember to add in the miscellaneous cost associated with your medical expenses. You are allowed to add in travel expenses to and from the medical appointment. You can also add in the expense of insurance payments, and the cost of any uninsured medical cost. In addition, anything beneficial to your health that you purchased based on the advice of you medical provider, such as a humidifier and the cost of the electricity to power it might be partially deductible.
Good education may not be cheap, but the IRS has provided tax deductions to make it easier by offering tax deductions. Tuition and assorted school fees can get you deductions of up to 4000 dollars without even itemizing your deductions. Parents can get up to $2000 in deductions, thanks to the lifetime learning tax credit. The American learning credit offers a dollar matching tax break up to $2,500.
Being able to write off some of your charitable contributions is widely known, but less widely known is the range of miscellaneous expenses that can also be written off. If you volunteer for a charity and buy supplies, that cost is deductible, as is the cost of a required uniform or special clothing. You can also get travel expenses if your vehicle is used for a charitable purpose, such as Meals On Wheels.