Before you know it, tax season will be here. Perhaps you’ve already started gathering all your documents together, or if you’re like me, they are sitting in a pile somewhere for you to dig through when the time comes. I know all too well the struggle that comes with paying taxes, believe me, I feel you there. You know what’s worse than paying your taxes? Paying more than you have to! You’ve worked really hard all year for your money, so don’t overlook something as simple as tax deductions. Sure it takes a little more work and organization, but you could be saving yourself hundreds of dollars! If you really want to maximize your deductions and maintain good records, you should be aware of these all year long. Even with the deadline approaching, it pays to know which deductions you might be eligible for. Please bare in mind that I am not a tax professional, and taxes are not the same for everyone. What you qualify for, someone else might not.Here are some commonly overlooked tax deductions you could be taking advantage of!
10 Most Commonly Overlooked Tax Deductions
Student Loan Interest
If you are paying student loans, you can get a tax deduction at the end of the year! Student loans have outrageous interest rates, and most people will spend most of their life paying off their student loans. This is one that’s really easy to miss, so if you’re paying off student loan debt, make a note to add the interest as a deduction.
Tax Preparation Fees
Whether you are doing your own taxes or paying someone else to do them, did you know you can include the fees on next year’s miscellaneous tax deductions list? Costs that are deductible can range from tax return preparation costs to electronic filing fees.
Job Search Expenses
Did you change your career or start a career this year? You can deduct expenses you incurred during a job search. Some of the expenses you can deduct include:
- Transportation (parking, tolls, cab fees) of $0.54 per mile
- Preparing, printing, and mailing out your resume (if applicable)
- Fees related to your job searches
- Employment agency fees
Self-Employed Health Insurance
If you are self-employed, your health insurance is tax-deductible. You can deduct any premiums you paid for medical and dental insurance, as well as qualified long-term care insurance for the year.
Health Savings Account Contributions
If you have a Health Savings Account, then you can claim a tax deduction on the contributions you or anyone other than your employer made to your account!
If you or your spouse doesn’t have an employer-based retirement account, you might be able to claim any contributions you made to a traditional IRA account. IRS rules do not allow deductions for Roth IRA contributions. If you are able to, you can take a deduction up to the full amount of allowable contributions which is $5,500 or $6,500 if you are over 50.
If your employer requires you to wear clothes that aren’t suitable for everyday wear, they can be claimed as a tax deduction. Some common items include military uniforms or protective clothing.
Business Travel Expenses
If you use your car for your job or business you might be able to deduct the cost of gas used. You can use either the standard mileage rate or actual-expense method, which is what it actually costs to operate the car for its business-use portion. You also might be able to deduct a few non-reimbursed business expense you may incur while traveling for work such as baggage fees, meals, and lodging.
Personal Property Taxes
If you have paid property taxes this year, you might be eligible for a tax deduction.
Keep these tax deductions in mind whenever you’re filing your taxes and you could end up with more money in your pocket this tax season! In an effort to help you stay organized this year while filing your taxes, I’ve created this awesome Tax Prep Checklist for you! It’s totally free, just click the Download your FREE Tax Prep Checklist button below the image.
Do you have any overlooked tax deductions that I missed?