Computer programs and online tools have made it easy for individuals to file their own tax returns and expedite their refunds. However, in the process of filing, many overlook important deductions that could increase their total refund. The following deductions are acceptable under the tax laws. Take advantage of them.
Medical And Dental Expenses
If your medical and dental expenses cost more than 7.5 percent of your adjusted gross income, you might be able to deduct them on your return. However, it is important to understand the law. People often get confused and include the cost vitamins. This expense is only eligible if you exceed the 7.5 percent limit. If you do meet the requirements, make sure to deduct any travel expenses that result from your medical care. Also, if you have a child with special needs who has to attend a specific school, you can deduct a portion of the enrollment costs.
Childcare Credit
Although you cannot deduct the money you pay for childcare, you can receive a helpful tax credit. Parents with dependent children younger than 13 can qualify for this credit. However, both the mother and father must work full time. Also, their childcare expenses must exceed $3000 per child. This benefit may also be used when one of the parents is disabled and cannot properly care for the children.
Charitable Contributions
You can also deduct your cash charitable contributions. This amount cannot exceed 50% of your adjusted gross income, and it can include costs incurred while you were performing service. This means you can deduct your mileage and food costs incurred while participating in a charity event. Also, sometimes companies automatically allocate a portion of your pay to charity. Therefore, make sure to look over your paychecks before filing.
Job Searching Costs
Furthermore, many can deduct the costs they incurred searching for a job. For example, many spend money creating their resumes and working with job counselors. Others experience mileage and travel related costs to interview. These expenses can be written off as long as you are not searching for your first job. They should be included in the miscellaneous portion of your return.
Moving Costs
If your job requires you to relocate, you can deduct your associated moving costs. The IRS says that these expenses should be reasonable. Typically, you can include the traveling expenses including lodging. However, meals during the move should not be expensed. Also, to qualify, your new job must be at least 50 miles away from your old home or job.
Keep these areas in mind when you are filing your return. They could help you increase your refund.