Tax Tips

7 Commonly Overlooked Tax Deductions

A big part of ensuring you get the biggest tax refund possible is claiming all the tax deductions and credits your eligible for. We all know life events like having children or buying a house have tax benefits, but what about other ways to save? It may seem impossible to know them all, but luckily, you don’t have to. Tax software like TurboTax will ask you simple questions when filing your taxes and will automatically check for more than 350 deductions and credits based on your answers.

Whether you donated supplies during the holiday season or you’re your own self-employed boss, it’s important to remember valuable tax deductions when filing your taxes. Check out these seven commonly overlooked tax deductions for family, home, and business.

Personal property taxes

If you happened to buy a car, house, or even a boat this past year, the thought may have crossed your mind that you’d have to pay taxes on it. You may have even received a state and local personal property tax bill during the year for your new purchase. While it’s a chunk of change out of your budget, the good news is that state and local property taxes related to personal property may be tax deductible.

Medical expenses

No one likes going to the doctor, but there’s a small silver lining: you may be able to claim your medical expenses as a tax deduction on your tax return. If your medical procedures exceed 10% of your adjusted gross income (7.5% if you are 65 and older), you’ve itemized your tax deductions and you paid your bills within the filing tax year, then you may be eligible to claim those expenses. If you’ve incurred medical expenses during this tax year, it might be worth a look to itemize your deductions and see just what sort of refund could be in store.

Charitable contributions

Giving to others can be rewarding and helpful, especially in times of need. While it’s important to remember to keep your receipts for charitable donations, you should also remember to include any supplies you purchased that were used to help a non-profit organization. Worried about losing your receipts or forgetting important information? TurboTax ItsDeductible can help you easily value and track your tax deductible contributions and then transfer them to TurboTax.

Moving expenses

If you had to move due to a new job, you may be entitled to a tax deduction for your moving expenses. You have to meet the distance and time guidelines outlined by the IRS, though. For example, your new job must be at least 50 miles farther from your old house than the distance between your old house and your old job.

Refinancing points

If you refinanced your house this past year, you may be able to deduct a portion of your points (it’s spread over the length of the loan). Points are pre-paid interest paid to the lender by the borrower to obtain a mortgage loan. This interest can also be called loan origination fees, maximum loan charges, discount points, or loan discounts.

Casualty-loss deduction

If you’ve been affected by one of the weather related disasters that happened in 2016 or any other unforeseen disaster, you may qualify to get a tax deduction for your casualty loss. The IRS allows taxpayers to deduct casualty losses if you haven’t been reimbursed by your insurance company. Don’t forget to look at your home mortgage interest you’ve paid as well, it can be a big deduction for homeowners.

Home Office Expenses

Are you self-employed and running your business from home? Although it can be financially beneficial to have a home office, there are still costs associated with it, so minimizing your taxes can be a huge help. You’re entitled to claim the home office deduction, as long as a space in your home is used exclusively and regularly for your business.  You can deduct a percentage of home expenses like your rent, mortgage interest, property taxes, and utilities based on the portion of your home used for office space.  Don’t worry about knowing how to figure out the home office deduction.  TurboTax Self-Employed will help you categorize and uncover business expenses that you may not even know about allowing you to save money for your business.  When you use TurboTax Self-Employed you will also get QuickBooks Self-Employed for this tax year allowing you to easily track your mileage, expenses, and capture receipts.

Did you know all the deductions? Don’t worry.  With TurboTax you don’t need to know tax laws or forms.  TurboTax will ask you simple questions and give you the tax deductions and credits you’re eligible for based on your answers.