Three Simple but Often Overlooked Income Tax Deductions and Credits

tax deductions overlooked

At the risk of sounding slightly bitter, it’s tax time. For those expecting money deposited into their bank accounts after filing their 2015 income tax returns, it’s a nice time of year. For anyone depositing their money into the IRS’ bank account, however, a root canal sounds like fun. Either way, lowering your tax liability throughout the preparation process is a big deal. Even if you owe, you could owe less. If you’re due a refund, you could bring home more if you are careful and you are sure not to miss some of the most overlooked tax deductions available. Some deductions are commonly missed by those who file their own returns, and we have a list for you to use as a guideline when filing your income taxes. Here are a few commonly overlooked deductions and credits not to miss.

  1. State sales tax – If you file state taxes, you can deduct those. If you live in Florida or one of the other six states that do not require a state return, you can deduct your sales tax for the year (either a standard amount or a precise amount if you have records).
  2. Charitable Donations – Did you tithe at church, donate old clothes, furniture, a car, cash or anything else throughout the year? If so, you can deduct that, as well as the travel expenses it took to make those donations.
  3. Child Care Credits – You probably already know you can claim a credit for the care you paid for throughout the year for any kids you have under the age of 12. However, you can also do the same thing if you are the caregiver for an elderly parent or relative who requires care while you work. Furthermore, go ahead and deduct those summer camp expenses, too, but only if they were paid for so you could work and have care for your kids at the same time.

Commonly overlooked, be sure you do not skip over these categories when it comes time to file your income tax return. You will be quite glad you took the time to double check each category.

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