Little-Known Tax Deductions You Need to Know About
Nearly everyone looks around for available tax deductions to help them save money. Here is a list of 10 unusual overlooked tax deductions that you may be eligible to claim.
1. Your work uniform: Believe it or not, the cost of your work clothing could be deductible on your return. The IRS allows taxpayers to write off the expenses for any required work uniform or clothing. The catch is that your employer must require the clothing for your job, and you can only use the clothing for work purposes.
2. Fees for a weight loss support group: If you've been diagnosed with a weight-related illness such as obesity or Type 2 diabetes, the fees you pay to attend regular weight loss support meetings may be deductible. You must submit proof to claim your medical condition as a tax deduction.
3. Food for your pets: While you can't write off the cost of food for a typical household pet, you can deduct pet food expenses for seeing-eye dogs or guard dogs for your company.
4. College tuition: The IRS allows taxpayers who pay college tuition out-of-pocket to write off up to $2,000 of these qualified expenses. The expenses may include costs of tuition, fees, or textbooks.
5. Gambling losses: The money you spend while trying to hit the lottery jackpot might be an eligible tax deduction. Gambling losses qualify as a tax break if you are involved in legal gambling, and you've also won money or prizes from gambling in that same tax year. If you decide to write off your losses, you can only deduct an amount that is less than or equal to the amount you won from gambling.
6. Paint removal: If your home has lead paint, and one of your children has suffered from lead poisoning, you may be able to write off the cost of removing the paint.
7. Retirement fund contributions: You will get a tax break for retirement When you contribute funds from your paycheck to your retirement fund. Just make sure that you abide by the annual contribution limits to get the most tax benefit without losing too much of your take-home pay.
8. Sheltering a foreign exchange student: If you agree to house a foreign exchange student for at least 15 days out of the month, you can write off up to $50 for each month he or she lives with you.
9. State and local mortgage help: If you qualify for a mortgage credit certificate from your state or local government, you can write it off on your taxes and get a credit of up to $2,000.
10. Plastic surgery: In some cases, the IRS allows reconstructive plastic surgery as an eligible medical deduction. This is typically allowed when a taxpayer undergoes a mastectomy and has reconstructive surgery afterward. The taxpayer must show that the surgery was a result of a medical condition.
These 10 little-known tax breaks can save you a bundle on your annual tax liability. If you're unsure about claiming them, talk to a qualified tax professional.
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