When it comes time to prepare your tax returns, there are so many credits and deductions to consider that it can be easy to forget a few. To quickly solve this problem, you could hire a tax professional, but even so, it is always a good idea to know exactly what you qualify for. For this reason I have put together the following list of 10 deductions and credits you are missing.
1. Child Care Credits
Be sure to check if you apply for a child-care credit. If you have kids then you know that childcare is not cheap, and child care credits are a great way to offset the costs. Even with reimbursement programs you may still qualify, but this credit is a little tricky so be sure to research it before you include it on your return.
2. Job Searching
With job losses at an all-time high, there is a lot of job searching going on in this country. What you may not know is that the expenses for job searching are actually tax deductible. You can also deduct moving expenses if you have to move more then 50 miles for a job.
3. Educator Expenses
Teachers and professors will often out a lot of their own cash into making their learning environment the best it can be for their students. Because of this, a certain amount of these expenses are tax deductible. However, you must be a teacher or educator to qualify.
4. Health Insurance Premiums
Everyone with a health insurance premium gets a deduction. However, self-employed individuals who are not covered by an employee plan get to deduct 100% of their health insurance premiums.
5. Charitable Contributions
Most people know when you donate money to a charity or non-profit organization for charity it is tax deductible. But did you know that other, non-cash donations are tax deductible as well? Indeed, anything from toy drives to goodwill donations are tax deductible--just keep the receipt.
6. Tax Preparation Fees
Ironically, one of the most commonly missed deductions is for the fees and costs of filing your taxes. This includes e-filing, software, and even professional tax preparation fees. However, you can only deduct last year’s expenses, so make sure to save any receipts you get now for next year’s tax return.
7. Casualty Deductions
If hurricane Katrina or the Southern California fires affected you, you may qualify for a casualty deduction. In fact, any one who has been affected by any fire, hurricane, or serious flood may qualify. Check the IRS website for more details.
8. Home Office Deductions
If you have a home office that you use as your primary office, you can get a reduction. This is an especially useful deduction for those trying to get their business off the ground and should not be overlooked.
9. Business Travel
There are multiple tax deduction possibilities for business travel. If you have a vehicle that you use primarily for business purposes, you may be able to deduct gasoline costs to and from business ventures. Other vehicle expenses may also be deductible as well. In addition to driving deductions, you may also be able to deduct expenses for other types of transportation and lodging when doing business.
10. State Sales Tax
You can deduct income taxes or state sales tax, depending on where you live. People who live in states that do not impose income taxes benefit from the sales tax deduction the most. While those living in states that do impose income taxes usually benefit more from the income tax deduction.