Commonly Overlooked Tax Deductions

Commonly Overlooked Tax DeductionsIf you’ve been watching television lately, chances are you’ve seen the commercial with the concessions salesperson leaving a stack of money on every seat in the stadium… H&R Block’s assertion that self-filing taxpayers last year paid more than a billion dollars in taxes that could have been saved by paying a professional.

In line with this same analogy, years ago, the gentleman who was running the IRS at the time told Kiplinger’s Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year by overlooking some common tax deductions.  With that said, wouldn’t you like to know if you’re one of the taxpayers these guys are trying to help?

Some of the tax breaks you may often overlook, or not even know about at all, include:

  • State Sales Taxes (which is even more important in states that don’t impose a state income tax);
  • Forgetting to include reinvestment dividends (which often occur automatically with mutual funds and other investments) in your tax basis may result in double taxation of those dividends;
  • Out-of-Pocket Charitable Deductions;
  • Student-Loan Interest Paid by Mom and Dad (a non-dependent child may qualify to deduct up to $2,500); and
  • Job-hunting Costs and Expenses (to the extent that your total miscellaneous expenses exceed 2% of your AGI).

Of course, these are just a few of the commonly overlooked deductions for self-filing taxpayers… there are many more to consider.  If you’d like to learn more, click here.

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