Tax Day is quickly approaching, and if you have not yet filed your taxes, you need to get on that right away! To help you out, we’ve compiled six tax deductions that most people forget about.
Charitable Donations
Every time you make a charitable deduction, like donating clothes to a local Good Will, making a casserole for a soup kitchen, etc. that money can be deducted on your tax return. Just make sure that you are donating to a non-profit, and if you donate more than $250, you obtain the proper documentation from the charity that you donated to.
Job Hunting Costs
Any money spent searching for a job in the same line of work as your most recent job, you can deduct on your taxes! Even if you didn’t get the job, these expenses are still deductible. Deductible expenses include: transportation to and from places involved in the job search, food and lodging if you spent time away from home, cab fares, cost of printing resumes, etc. However, job hunting costs are not deductible for your first job.
Child Care
If you had to pay child care while you were at work, 20 to 25% of that can be used as a tax credit. However, it may be a better deal if your boss offers reimbursement for child care, and you cannot do both.
College Credit
No matter how old you are, you can use the lifetime learning credit to offset some of the cost of education. You can get up to $2,000 a year if you earn less than $65,000 a year. So go out there and learn a few new skills.
Baggage Fees
If you fly for your business, you can deduct your baggage fees on your taxes. However, if you are not self employed, and your employer is reimbursing your travel fees, you won’t be able to deduct them.
Business Expenses
If you buy something that benefits your business, even indirectly, you can deduct it from your taxes. For example, the Tax Court allows junkyard owners to deduct expenses for keeping a cat or dog on hand to keep the junkyard free of rodents and snakes. We’re sure there is something you need for your business that you wouldn’t typically classify as a business expense that you can deduct.
Moving Expenses
If you move to take a new job, your moving expenses are tax deductible. That includes how much it costs to move your pet as well.