Three Most-Overlooked Tax Deductions

Jul 18 • Finance • 470 Views • Comments Off on Three Most-Overlooked Tax Deductions

Tax season is a trying time for everyone. When it comes to preparing your federal tax return or efiling taxes, spending extra time to look for appropriate tax deductions can save you quite a bit. In the current economic climate, every deduction is important. Here are a few popular deductions that can reduce your tax burden.

 Job Hunting Deductions

Unemployment is challenging, but there’s one small benefit. All costs related to a job hunt are tax-deductible expenses. A few of the charges that you can deduct include travel costs, accommodations and food for an out-of-town job interview. While you’re at home searching for a job, you can deduct taxi fares and fees imposed by employment agencies. The cost of printing resumes, creating new business cards, mailing résumés and advertising your skills are also deductible. To qualify for these deductions, make sure you keep receipts or credit card statements that reflect the date, amount and name of the party receiving the funds.

Relocating Deductions

 If you find a new job that is at least 50 miles away from your current location, you can deduct all of your moving expenses. As long as you resume work within one year, the cost of a job-related move is deductible. This also applies if you were transferred or given an employment offer that didn’t include moving costs. Moves completed before June 30 can be deducted at a rate of 19 cents per mile. Moving expenses incurred during the second half of the year are deductible at a rate of 23.5 cents per mile. Make sure to keep receipts for parking costs and tolls, because they’re deductible too.

 Charitable Deductions

Folks who have been generous can deduct charitable contributions. This applies to donations, cash contributions and charitable services. If you make a donation to a non-profit group, you should receive written acknowledgement for all contributions over $250. For donated items, you can create an itemized list with dates and have the document signed by an on-duty manager. Charitable driving can be deducted at a rate of 14 cents per mile, plus any tolls and parking charges. With documentation, charitable services and out-of-pocket expenses can be deducted.

Whether you’re filing a paper return or plan to efile taxes, these deductions can reward you for finding a job, looking for employment, supporting charities and doing the right thing. With a little planning, you’ll be able to assemble a sizable list of qualifying deductions.

Jill Burbank is a blogger who writes for numerous publications. Follow Jill @JillBurbank2.

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