Tax Day is only two weeks away. While you're preparing your taxes, make sure you don't miss some of these often-overlooked deductions. Little savings can add up big time!
- Eyeglasses, breast pumps, weight-loss programs, and other medically-related supplies. Get a copy of the IRS's Publication 502 for a full list of items.
- Fees associated with job hunting in 2012, including food, lodging, employment agency fees, and 55.5 cents per mile if you had to do a lot of driving.
- The cost of moving for your first job if it was over 50 miles away. Plus parking, tolls, and even 23 cents per mile if you drove your own car to move there.
- Financial advising costs, including the cost of subscriptions to financial publications, and even the cost to travel to meet with your financial advisor.
- Supplies you may have sent to help Hurricane Sandy victims.
- Credits for energy-saving home improvements made in 2012, like hot water heaters and geo-thermal heat pumps.
- Sales tax on your new car or boat, depending on the state you live in. Use this guide to find out if you'd qualify.
- Care for your parent, depending on their income level and how much financial support you give them.
- Student loan interest, even for voluntary extra payments.
- Student loans interest paid for by mom and dad. A child who's not claimed as a dependent can qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad (and you don't have to itemize to get this one).
- Refinancing points paid on your mortgage.
- Pay for jury duty collected by your employer.
- High-speed internet, phones, new computers, and other minor and major costs associated with a home office for the self-employed.
- Smaller charitable giving costs, including out-of-pocket costs like stamps for mailing out a fundraising ad or even the ingredients for the brownies you made for the bake sale.
- State taxes paid last spring for your 2011 taxes can be deducted from your 2012 return.
And after all these savings, I recommend treating yourself to a giant chocolate chip cookie!
These are just suggestions and we are not tax professionals. If you have specific questions, you should contact an accountant or tax professional. (Sources 1, 2)
