Make sure you are not paying more taxes than you are required by taking advantage of all the deductions and credits available to you.

1. Commonly Overlooked
Tax Deductions & Credits
By: John J. Bowman, Jr.

2. Job-Hunting Costs
• If you spend time this year looking for a job (not your first job)
then many of the expenses incurred while job-hunting can be
deducted, including:
• Transportation expenses: 56 cents a mile for driving plus
parking and tolls as well as cab fares
• Food and lodging expenses
• Employment agency fees
• Cost of printing resumes, business cards, postage, and
advertising

3. New Job? Moving Expensive
• To qualify for a moving expense deduction you must have moved at
least 50 miles away from your old home.
• You can deduct the cost of moving yourself and your household goods
to the new location. Some of the eligible deductions include:
• 23.5 cents per mile while driving your own car
• Parking and tolls
• Lodging
• You are eligible for this deduction even if you do not itemize.

4. Sales Taxes
• You have the option to deduct sales taxes or state taxes off
your federal income tax.
• The sales tax deduction is especially important if you live in a
state that does not impose a state income tax.
• However, even if you pay state taxes, the sales tax break
may be the better deal if you made larger purchases such as
a engagement ring or car.
• This will require doing an itemized deduction.

5. Child-Care
• You are eligible for a tax credit worth between 20% and
35% of what you pay for child care while you work. A tax
credit is even better than a deduction!
• It is also legal to list the cost of a babysitter as a charitable
contribution on your tax return, if you can document that
you were volunteering while the babysitter was performing
their duties.

6. Energy-Saving Home Improvements
• If you install qualified residential alternative energy
equipment you are eligible for a credit of up to 30% of the
total cost of such systems installed through 2016.
• This can include things such as a solar hot water heater,
geothermal heat pump, and wind turbines.

7. Lifetime Learning Credit
• The Lifetime Learning credit can provide up to $2,000 per
year
• You are eligible to take off 20% of the first $10,000 you
spend for education after high school in an effort to give
yourself new or improved skills.
• While this deduction phases out at higher income levels, it
does not discriminate based on ones age.

8. Health Insurance Premiums
• In some cases, insurance premiums from medical expenses can
be deducted from your taxes.
• Medical expenses usually need to exceed 7.5% of your adjusted
gross income in order to be deducted.
• However, if you are self-employed and responsible for your own
health insurance cover then you can actually deduct 100% of
your premium cost.
• This will be taken off your adjusted gross income as opposed to
an itemized deduction.

9. Self-employed Social Security
• If you are self-employed and forced to pay the full 15.4%
Social Security tax on your own, then you can write off half
of what you pay.
• This deduction can be found on the face of the 1040 form,
therefore, you do not need to itemize to take advantage of
this deduction.

10. Out-of-Pocket Charitable Deductions
• You can write off out-of-pocket expenses incurred while
doing charity work.
• If you make food for a soup kitchen or fundraiser, you can
deduct the cost of ingredients used to make the food.
• It is important to save the receipts or itemize the costs in
case you are audited.