Tax Deductions Many People Forget

These common tax deductions are often overlooked when filing

Tax Deductions Many People Forget
March 14, 2016

With the many different forms and the complicated rules to follow, personal taxes are often seen as a headache. This is especially true for those who want to itemize their deductions or who are self-employed. While taking deductions can help reduce the amount of money owed, not everyone knows what can be deducted. The following are some of the less obvious tax deductions that filers often forget to claim.

Many people know that charitable donations can be deducted, but few realize that this deduction covers more than just money given to causes. The value of any items donated can also be deducted, as can mileage driven while doing work for a charity.

If the filer’s parents paid off any of their student loans, the interest the parents paid on those loans can be deducted. However, the parents must claim the person on their taxes as a dependent. This deduction also has a cap of $2,500.

Similarly, those who are college students can take the American Opportunity Credit. This allows them to deduct $2,000 worth of all qualifying expenses they made related to their education, then an additional 25% of another $2,000. In total, a person can take a $2,500 deduction every year for a maximum of four years if their income is less than $80,000 (single) or $160,000 (married and filing jointly). Those who already have a degree but take continuing education courses may also be eligible for the Lifetime Learning Credit. This depends on their income.

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irene | 03.15.16 @ 17:01
I wish I had read this sooner but great info for next tax season
Erin | 03.15.16 @ 17:01
Great reminder to look for deductions in places you might forget. Most of these situations do not apply to us, but they will in the near future, so I will be keeping them in mind. Thanks.
Meredith L | 03.15.16 @ 17:01
I wish I had the extra funds to give to charitable donations. But then again, if you take your old clothes, shoes and other items to places like Salvation Army or Goodwill and actually get a receipt for estimated value, you can write those off too. Most people don't take the time to do that. They just put it in a bin and forget about it.
Carla | 03.15.16 @ 17:03
My Son has recently started college and it is really expensive. I will definitely pass this information on to him.
Brittany | 03.15.16 @ 17:04
Oh man. I already filed my taxes, so this doesn't help me much now, but def something to keep in mind for later. (nxt year)
Kyle | 03.15.16 @ 17:05
Great deal of into. I didn't know a lot of these could be counted.
Sarah | 03.15.16 @ 17:06
it is always nice to have so many reminders as to what can be deducted. every nickle counts!
Steffanie | 03.15.16 @ 17:06
Will be keeping this bookmarked for future use. Great list of information
Kailie | 03.15.16 @ 17:06
I make quite a few donations throughout the year, but I always forget to claim them.
Wanda Langley | 03.15.16 @ 17:07
I Donate to the Goodwill Store's several times a Year and did not know this. I will get a Receipt for my Donations from now on.
Amanda | 03.15.16 @ 17:08
We make donations through out the year but I see them as donations not a tax saving sceme.
Jo Ann | 03.15.16 @ 17:09
Great reminders, Especially for those who are self employed, there are so many deductions for those taxes, and by using all your deductions it really reduces the bottom line for those taxes. Make sure you keep all of your receipts no matter how small they do add up.
$commenter.renderDisplayableName() | 03.18.18 @ 06:15

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