Top 10 Commonly Missed Tax Deductions and Credits

Instead of rushing through your taxes as fast as you can, you ought to take the time to seriously consider the following deductions and credits that can easily be forgotten. The little time you spend reading this could end up saving you money. Keep in mind that purchasing Online Tax Software will help you catch most of the following deductions. At TopTenREVIEWS We Do the Research So You Don t Have To. 

Job-Related Moving Expenses

If you have had to move because you moved your business or the company you work for required you to relocate, you may be able to claim this deduction. There are distance and time requirements for this deduction, see IRS Publication 521.

Educator Expenses

Qualified educators including principles and aides can get as much as a $250 deduction for items that they purchased to educate. This is for elementary and secondary educators, see IRS Topic 458 for more information.

Higher Education Expenses

Getting a better education is always a good decision and an excellent investment. If you paid tuition and fees for yourself, a spouse or dependent, you may qualify for this deduction, see IRS Publication 970.

Residential Energy Property Credit

 Going green  seems to be a phrase that is used more and more often, now you can take advantage of a tax credit for helping your house become more "green." See IRS Form 5695.

Retirement Tax Credit

The Credit for Retirement Savings Contributions can provide you a credit of up to $2000, eligibility and income restrictions to apply. See IRS Form 8880.

Improvements on your home for medical purposes

Home improvements are never cheap, and the IRS knows this. If you have remodeled or modified your home due to medical purposes, such as wheel chair access to the shower, then you are eligible to deduct the expenses from your taxes. See IRS Publication 502.

State Taxes on Personal Property

The importance of documentation can never be over-emphasized. You do not need receipts for every purchase that required sales tax or your state income tax, as long as you have documentation. For example, this deduction would apply to you if you bought a new car or boat. These items require a large tax and it can be a great deduction for you when you file your taxes. See IRS Topic 503.

Child and Dependent Care Credit

If you paid child care expense for a qualified dependents, you may be able to qualify for this credit. Qualified individuals include care for children under 13, dependent or a spouse who is physically or mentally incapable of self care, other conditions apply. See IRS Topic 602.

Noncash Contributions

Do you need a receipt for every charitable contribution that you make? No. With the proper documentation you can claim a deduction for noncash contributions such as mileage or goods. See IRS Publication 526 for more information.

Work-Related Expenses

We work and then we play, and for most things we just pay. In this case, keep track of what you spend as you work. If you have business related travel expenses or must travel long distances or have work-related education expenses, you maybe be able to quality for this commonly missed tax deduction. See IRS Publication 529.

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