by Kellyann Dinoff

Created on: June 16, 2008

Found Money Commonly Overlooked Tax Deductions

Childcare Credit Not a deduction per say, but even better! Tax credits reduce your tax bill dollar for dollar. You can take up to a $6000 credit for your work-related childcare expenses.

Taxes You Paid Last Year If you owed money on last year's return, don't forget to include that amount along with your state tax deduction when you file this year. You are entitled to a deduction.

Military Travel Expenses If you're a member of the National Guard or military reserve, you can deduct your expenses for duty-related travel provided the travel is more than 100 miles and requires an overnight stay.

Moving Expenses for Your First Job While you may not deduct your expenses for finding this first job, if it requires you to relocate more than 50 miles away, you are entitled to a write off for certain moving expenses.

Charitable Contributions While you may make it a point to get receipt for the cash donations you made last year, did you keep track of your mileage to the soup kitchen where you volunteered? What about the ingredients for the cookies donated to your school's bake sale; or the stamps, envelopes, and paper you purchased for your church's fundraising campaign? It may not sound like much, but these smaller items add up. Keep your receipts and track your mileage to ensure you're rewarded for your good deeds. Don't forget to get documentations for items such as clothing and household goods that you may have donated to your local Salvation Army or homeless shelter.

Home Improvements Certain home improvements will qualify you for a tax credit. If you installed qualified, energy-efficient equipment or appliances in your home, or made certain improvements to your home that reduced its energy consumption, then you may be entitled to a credit for those improvements. Check with your tax advisor or local utility company for a list of qualifying materials and equipment.

Casualty & Theft Losses If you were a victim of an unexpected, unusual and identifiable loss of property such as a tornado, hurricane, fire, or flood, you may be eligible for a deduction in the amount of the damages incurred during such a catastrophic event. Likewise, if you're a victim of theft or even, in some cases, vandalism, you would be eligible to a deduction. The key to eligibility for these events is that they be sudden, unexpected and unusual.

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