The Top 5 Most Overlooked Tax Deductions and How to Claim Them
When it comes to tax preparation, many individuals and businesses in De Pere often focus on the most common deductions: mortgage interest, student loan interest, and standard business expenses. However, there are several lesser-known deductions that can save you money. In this blog post, we'll delve into the top 5 most overlooked tax deductions and guide you on how to claim them.
## 1. Medical and Dental Expenses
Many people are unaware that certain medical and dental expenses can be deducted. If these expenses exceed 7.5% of your adjusted gross income, you may be eligible for a deduction. This includes fees to doctors, dentists, and even certain alternative medicine practitioners. Don't forget to include travel expenses related to medical care, like gas and parking fees.
## 2. Job-Hunting Costs
If you found yourself in the job market last year, you might be eligible for deductions related to your job hunt. This applies even if you didn't secure a new job. Expenses like resume preparation, career workshops, and travel related to interviews can be claimed. Green Bay residents who were job-hunting in a different city may even be eligible for lodging expenses.
## 3. Energy-Efficient Home Improvements
Sustainability isn't just good for the planet; it can be good for your wallet too. If you've made energy-efficient home improvements, such as installing solar panels or an energy-efficient heating system, you may be eligible for a tax credit. Credits differ from deductions as they reduce your tax liability dollar-for-dollar.
## 4. Educational Expenses
The Lifetime Learning Credit or the American Opportunity Credit are well-known, but did you know that work-related education expenses can also be deductible? If you've taken courses that either maintain or improve skills needed in your job, those educational expenses can often be deducted. This is particularly relevant for professionals in rapidly evolving fields.
## 5. Charitable Contributions
Most people know that cash donations to a charity are deductible. However, many overlook the potential to deduct the fair market value of goods donated, such as clothing or furniture. Moreover, you can also deduct mileage or transportation costs incurred while volunteering for a charitable organization.
### How to Claim These Deductions
Claiming these overlooked deductions requires diligent record-keeping. Save all relevant receipts and make notes of why a particular expense is deductible. Consult a tax professional to ensure you meet all specific requirements. Tax preparation experts in De Pere and Green Bay are well-equipped to guide you through the process, helping you maximize your returns.
In summary, don't leave money on the table when filing your taxes. Be aware of these often-overlooked deductions and consult professionals for guidance. A thorough approach to your tax preparation can result in significant savings, making your financial outlook brighter as you head into the new fiscal year.