When an individual files their tax returns each year they are
able to claim a number of tax deductions. Many times a tax
deduction can reduce the amount of money that is owed to the
Internal Revenue Service (IRS) or it can create a larger tax
refund. The most commonly used tax deduction is the standard tax
deduction; however, there are number of other tax deductions
that many individuals fail to claim or even consider. Frequently
overlooked tax deductions can prevent a taxpayer from getting
additional money that they deserve.
Claiming a number of tax deductions often requires receipts or
other documentation. For this reason there are many individuals
who may be unable to claim some of these frequently overlooked
tax deductions on this years tax return. To prevent yourself
from losing even more money next year taxpayers are encouraged
to spend the whole year preparing for tax season and tax
deductions.
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One of the most frequently overlooked tax deductions is that of
medical expenses. To claim a medical expense deduction the
medical expenses must be at least seven and half percent of a
taxpayers income. While this may seem like a large amount of
money there are some individuals who will definitely qualify for
this tax deduction. Families with a large number of children
often qualify for this deduction because the total cost of
healthcare for multiple children is often high. Taxpayers who
recently had a child or were diagnosed with a life threatening
illness are likely to meet the deduction requirements due to do
multiple checkups and hospital visits.
There are a number of taxpayers who carefully keep track of the
amount of money or items that they donate to charities; however,
the majority of taxpayers do not which makes charitable
donations another frequently overlooked tax deduction.
Individuals who donated money, clothing, or household items are
able to claim a tax deduction as long as the charity is approved
by the Internal Revenue Service (IRS). The majority of most well
known charities are approved; however, individuals can obtain a
full list by visiting the website of the Internal Revue Service
(IRS) which can be found at
http://www.irs.gov.
Unfortunately there are a number of taxpayers who will qualify
for a natural disaster tax deduction. With the recently active
2005 hurricane season and the dreadful predictions of more to
come it is likely that a large number of individuals will
qualify for a natural disaster tax deduction. This deduction is
used to make up for the amount of property damage that was not
covered by homeowners insurance. To qualify for a natural
disaster tax deduction the property loss must be at least ten
percent of an taxpayers income. It is sad to say, but with the
majority of tornadoes, hurricanes, and floods is it not uncommon
for a home to be completely destroyed which would allow the tax
deduction to be claimed.
With many businesses declaring bankruptcy or laying off their
workers there is an increased number of individuals looking for
a job. Another one of the most frequently overlooked tax
deductions is that of expenses related to a job search. Many job
seeker know how expensive looking for a new job can be. It is
possible for job seekers to claim tax deductions on their phone
expenses that are related to a job search. These phone expenses
may include long distance telephone calls to set up an interview
or even over the phone interviews. In addition to phone expenses
job seekers can also claim the mileage of going to and from a
job interview. Other job search deductions may include the cost
of having a resume professionally prepared and the costs of
mailing or faxing out that resume.
Additional frequently overlooked tax deductions include the
amount of money spent on sales tax, tax preparation, gambling
losses, property taxes, and more. The best way to become aware
about the most frequently overlooked tax deductions is by using
a tax software program to prepare your taxes or hiring the
services of a professional tax preparer. These are great ways to
become aware of commonly overlooked tax deductions and to
determine if you qualify for them.
About the author:
Gray Rollins is a featured writer for the TaxHelpDirectory.com.
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