Missing out on well-earned tax deductions is a common mistake. You’re far from alone if you’ve filed your taxes only to realize a few weeks later that you missed out on a deduction opportunity. “It is common for taxpayers who prepare their own taxes to miss out on deductions that perhaps are new or change yearly,” said Megan Sonicksen,who wear cheap Air max shoes tax communication specialist with the National Association of Tax Professionals.
What is a commonly overlooked deduction?
A: During these hard economic times, many people are job-searching. Not many people know that you can deduct certain job-search expenses as miscellaneous itemized deductions. You can be eligible if you are searching for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if you are a looking for a job in a new occupation, there was a substantial break in the job search or if you are looking for a job the first time. Expenses that can be deducted are employment agency fees, expenses related to preparing and mailing resumes, and mileage related to looking for a new job in the same occupation.
What kind of charitable donations are tax deductible?
A: Contributions can be cash, property or out-of-pocket expenses you paid to do volunteer work. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or use the standard rate of 14 cents a mile. Add parking and tolls to the amount you claim for either method. It is important to verify the organization’s charitable status. The easiest way to do this is to call or check its website. You need a receipt for any donation you claim on Schedule A, even the dollar you plop into the red bucket for The Salvation Army.
What work-related expenses are deductible?
A: Job-related items that can be deducted include work clothes and uniforms that are not suitable for non-work wear, and protective clothing such as safety cheap Boots , safety glasses, work gloves and hard hats. Other items include union dues and expenses, as well as tools used in your work that you are not reimbursed for.
Are energy-efficient home upgrades eligible for deductions?
A: A taxpayer has until Dec. 31 to add insulation, energy-efficient windows, doors, water heaters and furnaces to his or her primary home to be eligible for the energy credit. Up to a $1,500 credit can be received for this year and last year combined. Not all Energy Star-qualified products qualify for the tax credit, so check the U.S. Department of Energy’s website.