Overlooked Deductions-
- Charitable donations – most people know to claim a deduction for a qualifying cash donation to a charity, but many forget those donations of clothing in “good used condition or better,” or other goods. Just be sure to have a receipt from the charity that states the value of your donation.
- Childcare – for many working families, it’s an unavoidable expense. Claiming the child and dependent care credit can ease the burden. It is important to request receipts from your childcare provider that show your payments.
- Energy efficient home improvements - if you’re doing home improvements, consider energy efficient external windows and doors, insulation, heating and cooling equipment, and more. You could get a tax credit up to 30% of the cost of qualifying items. You could also get a tax credit for 30% of the cost of renewable energy home additions such as a solar energy systems or a geothermal heat pump. This credit has a lifetime limit of $500 after 2010.
- Automobile tax credit – a hybrid gas-electric or alternative fuel vehicle could get you a tax credit if you buy a qualifying vehicle.
- American Opportunity Credit – you could get a tax credit for up to $2,500 for college tuition and related expenses you paid during the year.