5 Often Overlooked Tax Deductions

Now that the last-minute panic of April 14th is fresh in your mind, start planning for next years taxes today. Below are 5 often overlooked tax deductions to keep tabs on throughout the year:

1. Out-of-pocket charitable contributions – Not all sporadic giving results in an end of the year statement. To get the most out of your contributions, keep records of donations throughout the year. You’ll be surprised how quickly it adds up.

2. Student loan interest – much like mortgage interest, student loan interest is tax deductible. Even if mom and dad are helping you with the payments, the IRS mechanically treats this as though your parents give you the money to pay the payments. Thus, you can count the deduction, as long as you are not claimed as a dependent.

3. Moving expense to take a job – if today’s employment slump has forced you to make a career change, keep the receipts. If your move is greater than 50 miles, your expenses are tax deductible.

4. Child-care credit – If you incur child care expenses in order to work, you may qualify for a Child-Care credit. Credits are much better than deductions because it is money going back into your pocket, as opposed to a reduction in taxable income. Be sure to ask your CPA about this.

5. Refinancing points – With mortgage rates at an unusual low, many people are choosing to refinance. If you are one of those people, did you know those points are deductible? Although you have to spread the deduction over the life of the loan (over 15 years for a 15 year mortgage), it is better than nothing.

Don’t let Uncle Sam get you down. Do your part to limit your taxes.

Also, check out ItsDeductible Online, by Turbo Tax. It is a slick way to keep track of your deductions throughout the year. Then, when tax time rolls around, you can import the info straight into Turbo Tax. Cool huh?!