5 Commonly Missed Tax Deductions

Come tax time every year people want to make sure they get as much money back from the IRS as possible. There are many tax deductions available, and tax laws constantly change, so many Americans miss out on tax deductions that can save them money every year.

Below are some of the most common missed tax write-offs in America:

  1. Out of pocket charitable contributions. While many people remember to deduct the big ticket charitable contributions, such as those that come out of your paycheck or big donations, many people don’t think to write off smaller expenses. You can write-off out of pocket contributions to a charity, such as expenses for making food for a non-profit charity, or the cost of donated items such as blankets or coats to a homeless shelter. You can also write off 14 cents per mile plus parking fees for use of you car for charitable work.

    Tax deductions

  2. Student loans paid by your parents. If your parents are paying some or all of your student loan payments, you can deduct up to $2,500 of these expenses. Your parents however cannot deduct student loan payments.

     

  3. Job hunting costs. If you are looking for a position in the same line of work you can deduct certain job search related expenses such as transportation expenses (56.5 cents per mile), food and lodging expenses if your search takes you away from home for the night, employment agency fees, and costs of printing resumes. Job hunting expenses cannot be deducted if you are searching for your first job, but moving expenses to get your first job can be deducted. For more information on these deductions see the IRS’s publication on this issue.

     

  4. Child care credit. You may qualify for a tax credit worth between 20% and 35% of what you pay for child care while you work.

     

  5. Travel expenses for military reservists. Members of the military or National Guard can write off the costs of travel to meetings or drills. The rate for 2013 is 56.5 cents per mile if you have to travel more than 100 miles from home if you are away from home overnight. You may also be able to deduct some costs for meals and lodging while you are away from home.

     

There are certainly more tax deductions which some people may miss. The best way to be sure you are getting all of your available tax refunds is to have a tax preparation expert do your taxes for you. Call STL Tax today at (314) 645-1614 to see how Saint Louis CPA James Coats can help you with your tax returns to get the biggest tax refund possible.

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