Don’t overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.
- Gambling losses: If you have incurred gambling losses, you can deduct them from your taxes, but only up to the amount of your winnings.
- Out-of-pocket charitable deductions: You can write off out-of-pocket costs that you incur while you are doing work for a charity, such as ingredients you purchased to prepare meals for a nonprofit organization’s soup kitchen or stamps that you buy for a school’s fund-raising mailing.
- State sales taxes: If you live in a state that doesn’t impose a state income tax, you can either deduct the state income taxes or the state and local sales taxes that you paid.
- State income tax refund: If you claimed the standard deduction for state and local taxes on your most recent federal tax return, you don’t need to report a state income tax refund on your federal income tax return.
- Job search expenses: If you are looking for a job in the same field, you may be able to deduct expenses such as resume preparation, travel expenses, and placement agency fees.
- Moving expenses: If you moved to a new location for work, you may be able to deduct expenses such as transportation, storage, and lodging.
- Home office deduction: If you use part of your home exclusively for business purposes, you may be able to deduct expenses such as rent, utilities, and insurance.
- Child and dependent care credit: If you paid someone to care for your child or dependent so you could work or look for work, you may be eligible for a tax credit.
- Earned income tax credit: If you have a low to moderate income, you may be eligible for a tax credit that can reduce the amount of taxes you owe.
- Energy-efficient home improvements: If you made energy-efficient home improvements such as installing solar panels or wind turbines, you may be eligible for a tax credit.