6 basic tax deductions

Here are 6 commonly missed tax deductions that you should keep in mind:

  1. Medical Costs: All the expenses you paid that the doctor recommends to alleviate your medical condition including exercise equipment, purchasing or maintaining a spa or swimming pool, therapies and others.
  1. Moving Expenses: If you change your job and now you need to travel for more than 50 miles to work, and you work at least 39 weeks during the year, these can be used as a deduction in your tax return.
  1. Mileage Expense: You can deduct your mileage if you are using your vehicle for business. Whether you are an employee or self-employed. Moreover, you can also deduct the cost of your travel between job locations if you work at more than one job.
  1. Home office: When you have a business and you are using your home as part of it, you can use all your home expenses to reduce your tax as a proportion to your business use of home i.e. portion of rent, mortgage interest, utilities, depreciations, repairs and maintenance and many others.
  1. Job Hunting Expense: Expenses you incur when you are looking for a job may be deducted like resume preparation, postage, travel, meals, counseling, agencies etc. As long as it doesn’t exceed 2% of your income even if you did not change your job.

 

  1. Health Insurance: Amount paid for your health can be used to reduce your tax, this will be included as part of your medical expenses.