Tax Credits Commonly Missed
- While you may receive documentation of the large charitable contributions you make during the year on your pay stub or in the form of a receipt from the charity to which you donated, there are several smaller donations that you may make during the year that can add up. As of 2011, you may deduct 14 cents per mile when you drive somewhere for charitable reasons. You may also deduct the price of supplies you buy for an organization or deduct the price of ingredients you buy to make a meal for a charitable organization. Keep receipts for purchases in case of an audit.
- Job-seekers may deduct expenses related to searching for a new job that is in the same career field as their previous job, as long as they spend more than 2 percent of their adjusted gross income on the job search. Job-seekers cannot deduct expenses related to finding a first job. Some deductible job-search expenses include food, transportation and lodging costs as well as employment agency fees.
- Those who find new jobs that require them to move more than 50 miles from their current residence may deduct the amount that it cost to move their family and their household items to the new place of residence. Those who move to take a new job also may deduct 16.5 cents per mile, as of 2011, for each mile they drive in their own car to travel from their previous residence to the new location.
- Those who were required to pay state taxes from the previous tax year may deduct the amount paid from their current year's tax liability. State taxpayers may also deduct state income tax that has been withheld from paychecks or that they paid as estimated quarterly tax payments.
- When people refinance homes, they may deduct the amount they paid to purchase points for their mortgage. The points must be deducted over the life of the loan. This means that for a 30-year loan, homeowners may make an annual deduction of 1/30th of the total amount they paid for points.
