Taking advantage of every possible deduction is highly beneficial, especially if you are short of money. Yet, a lot of such available different tax deductions go unclaimed by taxpayers due to lack of knowledge.
IRS allows itemized deductions and although a few deductions are known by taxpayers, there are still a number of forgotten tax deductions you can take that you didn’t know about which can help cut your tax bill.
Spending out-of-pocket to travel for job interviews, shelling out for stationary while doing your cover letters, searching for a better job while you are still employed, cab fares and even food and lodging are all tax deductible.
Generally, during jury duty an employee is being paid by his employer and as a recompense, the employee hands over the jury pay back to the employer. The employee can then, later on, deduct the amount given to the employer.
People, when travelling, rarely recognize this legitimate deduction. If you are self-employed and travelling for business, you can easily tag on those costs as a legitimate deduction.
Although, many tax-credits for energy-saving home improvements have expired but the most valuable credits still exist. These can effectively refund 30% of your alternate energy upgrade cost. This includes solar hot water heaters and geothermal heat pumps.
In most cases, you are allowed to take mortgage or student-loan interest deduction. However, if you are a non-dependent student and your parents pay your loans, the IRS treats this as a gift to you from your parents.
A non-dependent child can claim up to $2500 of student-loan interest paid.
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