Most Overlooked Tax Deductions
Tax season is here. It’s time to dig out all your receipts, paperwork, documentation and cuddle up with your calculator.
It can be a real pain to figure out what you should, could, or can’t deduct. But, finding all your deductions can really add up to a big refund.
Experts have said many taxpayers forget to deduct their charitable donations like electronics, clothes, and money. Now, the IRS requires documentation in detail for these donations, along the lines of a cleared check or receipt.
Energy efficiency improvements on your home can also jump right in on the tax deduction wagon. Upgrades to your doors, windows, and insulation are deductible, if they improve the energy efficiency of your home.
Two other deductions frequently overlooked are the Earned Income Credit for working families with low incomes and the Child Tax Credit if you have kids under 17. If you do your own taxes, both of these can be a pain to calculate, but well worth the effort.
Here are a few more tax deductions which are frequently overlooked:
- Donating Stock or Mutual Funds
- Holiday Donations - Track Them to Deduct Them
- Home Ownership Tax Deductions
- Charitable Items - High Prices Leave Deductible Portion
- Student Loan Interest Tax Deduction
- Home Office Expenses
- Hybrid cars can drive up the savings
- Donate Your Car to Charity
- Natural Disaster Loss Deduction
- Work Uniform Expenses are Deductible
- Donations in Less Obvious Ways
- Higher Education Tax Breaks
- Charitable Deductions - Deducting Your Non-proft Contributions
- When Should Non-homeowners Itemize