Every year, taxpayers leave more than $1 billion dollars on the table by not claiming all the tax credits and deductions they’re entitled to. So, here are a few tax deductions you might be overlooking:
- Credit for dependent care. Most people think that only means daycare for your kids if you work outside the home. But you can also deduct expenses for day camp, after-school programs, and babysitting – provided they’re necessary to allow you to work.
- Animal rescue. Say, you bottle-feed newborn foster kittens at home, or take in sick, older animals whose owners can’t care for them anymore. You can deduct your expenses, provided you keep separate the expenses for your rescue animals, and your personal pets. You’ll also need to get a letter from an authorized nonprofit confirming that they’re overseeing your rescue activities.
- Job-hunting expenses. You can deduct any search-related expenses, including postage, parking, and phone bills. But only if you’re looking for a job in the same field you already work in. And if you have to move to take a job, you may be able to deduct some of your moving expenses – only if your new job is at least 50 miles farther from home than your old job.