Lifestyle

The 17 Most Overlooked Tax Breaks

LifestylePublished Feb 14, 2020
By Kathleen Wong
featured-img-of-post-223815jacoblund/iStock

After the cheer and joy of the holidays, love fills the air during Valentine's Day. Then before we know it, it's St. Patrick's Day, followed closely by colored eggs and the Easter Bunny. Unfortunately, the next holiday is not as fun: Tax Day. Usually falling sometime in mid-April, Tax Day is the term for the deadline individual income tax returns are due to the US federal government.

Since 1955, those living, working and therefore filing taxes in the US have had to gather up all their tax documents and pay stubs summarizing their income earned in the previous year before Tax Day. However, the government usually starts accepting tax returns starting in January. 

Even though we had to take algebra and world history in high school, personal finance was rarely in the curriculum. In other words, filing tax returns ain't always easy for most people. So here are 17 overlooked tax breaks that may save you some cash.

1/17
Donations to Charity-placeholder
Donations to Charity
monkeybusinessimages /iStock

Donations to Charity

Hey, Good Samaritans! Good news! Besides helping others and our community be better, it turns out being altruistic can benefit our tax return. Charitable contributions can be claimed as deductions as long as we have our receipts. This applies to more than just cash donations, including gas from driving to and from the soup kitchen and any items we donated.

2/17
Money Spent Job-Hunting-placeholder
Money Spent Job-Hunting
AntonioGuillem/iStock

Money Spent Job-Hunting

Job hunting is never fun -- but at least we can get some tax benefits out of it. People who looked for a new job in same industry as the current or most recently held job can write off anything spent during the hunt. This includes transportation, printing costs, and business cards.

3/17
A Move of More Than 50 Miles-placeholder
A Move of More Than 50 Miles
monkeybusinessimages /iStock

A Move of More Than 50 Miles

If a new job made us move over 50 miles away, then we can write off some of our moving expenses, such as hiring movers. This is helpful since as anyone knows, moving is expensive.

4/17
Child Care Services-placeholder
Child Care Services
Lordn/iStock

Child Care Services

Having young children and working a job is a difficult task and sometimes we have to enlist external help. Enter the godsend of child care. Tax credits can take care of up to 35% of our child care costs.

5/17
Jury Duty Income-placeholder
Jury Duty Income
Image Source/iStock

Jury Duty Income

Sometimes duty calls -- jury duty that is. While sitting in court for sometimes days on end isn't exactly everyone's idea of fun, we can get a tax break out of it. We can deduct the income we missed out on while serving on the jury, if our employer did not pay us.

6/17
Being a Full-Time College Student-placeholder
Being a Full-Time College Student
jacoblund/iStock

Being a Full-Time College Student

Being a full-time college student sure isn't easy. Thankfully, there are tax breaks! The American Opportunity Credit covers the first $2,000 we spend on college expenses. They'll cover up to $2,500 per year if we make less than $80,000 if single or $160,000 if married.

7/17
Professional Development-placeholder
Professional Development
fizkes/iStock

Professional Development

Learning doesn't stop when we leave school. If we took professional development classes to further our job skills, then we may be eligible for the Lifetime Learning Credit. If we qualify, which is based on our income, we can get 20% of those expenses covered.

8/17
Business Trip Baggage Fees-placeholder
Business Trip Baggage Fees
EXTREME-PHOTOGRAPHER/iStock

Business Trip Baggage Fees

Baggage fees add up, don't they? If we took a business trip and had to check our bags, we can deduct those fees and write them off as a travel expense. Take that, airline fees!

9/17
Electric Car Purchase-placeholder
Electric Car Purchase
Ziga Plahutar/iStock

Electric Car Purchase

Electric cars are good for the environment -- and our tax returns, apparently! Most popular models are eligible for a tax credit up to $7,500. But restrictions apply, so make sure to research before purchasing a new vehicle.

10/17
Birth Control-placeholder
Birth Control
Rattankun Thongbun /iStock

Birth Control

For people who had to pay for a birth control prescription out-of-pocket in the past year, listen up! There may be a tax deductible in sight as long as the contraception wasn't purchased using pre-tax dollars in a flexible spending account.

11/17
Alternative Energy Sources-placeholder
Alternative Energy Sources
Animaflora/iStock

Alternative Energy Sources

People who upgraded their home with an alternative energy source can get a credit of up to 30% of the expenses to make that eco-friendly change. As if we needed a better reason to go solar.

12/17
Elderly Care-placeholder
Elderly Care
izusek/iStock

Elderly Care

Having our parents get older can be a difficult and tricky situation, and elderly care often becomes expensive. If our parents qualify as a dependent on our taxes, we can write their home care expenses as a tax deductible.

13/17
Teacher Supplies-placeholder
Teacher Supplies
FatCamera/iStock

Teacher Supplies

Hey teachers, we have good news for you! Teachers who purchased classroom supplies with their own money and weren't reimbursed by the school are eligible for a $250 tax deduction each year.

14/17
A Church or Historical Site Wedding-placeholder
A Church or Historical Site Wedding
valpasc/iStock

A Church or Historical Site Wedding

Weddings sure aren't cheap, so for people who got married in the past year, listen up. Those who got married in a church or other historical, nonprofit site can write off those fees as a charitable contribution.

15/17
Telecommuting-placeholder
Telecommuting
Morsa Images /iStock

Telecommuting

Telecommuting is becoming more popular. Those who work from home may get some tax breaks, such as itemizing a home office. However, this has to be legit and our principal place of work, so just because we sometimes write a few emails from our den doesn't mean it's a home office.

16/17
Timeshare Property Taxes-placeholder
Timeshare Property Taxes
rmcguirk /iStock

Timeshare Property Taxes

Vacations are nice, but tax breaks are nicer. Those who own a timeshare can deduct the property taxes they pay for it as an itemized deduction.

17/17
Breastfeeding Equipment-placeholder
Breastfeeding Equipment
LightFieldStudios/iStock

Breastfeeding Equipment

New mothers who had to purchase breast pumps and other breastfeeding supplies in the past year can write them off as medical expenses.

financestaxes
Cafemom Logo
This is motherhood #nofilter

AboutTermsContactPrivacyPRIVACY SETTINGSSUBMIT A STORY
© 2024 WILD SKY MEDIA.
ALL RIGHTS RESERVED.
PART OF WILD SKY MEDIA
| FAMILY & PARENTING
CAFEMOMMAMÁSLATINAS
LITTLETHINGSMOM.COM
This site is owned and operated by Bright Mountain Media, Inc., a publicly owned company trading with the symbol: BMTM.