Take Advantage of These 10 Tax Breaks
As a taxpayer, it’s your goal to make sure the IRS receives as little from you as possible. One way to ensure this is to take advantage of every tax deduction available to you. Below are 10 tax breaks commonly overlooked by taxpayers, but that could result in a lot of saved dollars:
Additional charitable gifts: In addition to monetary gifts you make to charities, you can also deduct any supplies, uniforms or transportation costs used for charitable purposes.
Moving expenses: You can deduct many moving expenses when you relocate to another job, but did you know that this applies to recent college grads starting a new job as well?
Job hunting costs: Already-employed workers can deduct costs, such as fees for resume preparation and outplacement agencies, as long as they itemize. However, these costs, along with other itemized expenses, must exceed two percent of your adjusted gross income in order receive any savings.
Military reservists’ travel expenses: Members of the military reserve forces and National Guard may deduct certain travel expenses. For example, military personnel traveling to training exercises can deduct the cost of lodging, driving expenses and half the cost of meals.
Child care credit: Most parents only claim the Child and Dependent Care Credit during the school year for after-school day care, but it also applies to summer day camp costs.
Mortgage refi points: You may be able to deduce the points on a refinance of your home loan as long as you use refinanced mortgage proceeds to improve your current residence.
Many medical costs: It’s often hard to reach the 7.5 percent of adjusted gross income threshold before you can claim any medical expenses. Consider looking into miscellaneous medical costs such as travel to and from medical treatments, insurance premiums and even alcohol-or drug-abuse treatments.
Retirement tax savings: When you contribute to retirement accounts, you can receive a tax savings for up to 50 percent of the first $2,000 you put in.
Educational expenses: There are many tax-saving opportunities for individuals who want to further their education.
Energy-efficient home improvements: Although many of the generous tax credits in regards to energy efficiency expired in 2010, there are still several available. But pay attention to specific spending limits on certain appliances and improvements.
For more information on these overlooked tax breaks, visit Bankrate.com.