Overlooked Deductions-
- Charitable donations – most people know to claim a deduction for a qualifying cash donation to a charity, but don’t 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.
- Work related expenses – you may be able to write off unreimbursed job search expenses if you were out of work. These could include employment agency fees, transportation, lodging and food on overnight trips for interviews. Or if you relocated for your job, you may be able to write off some of the relocation expenses.
- 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 2010 tax credit if you bought a qualifying vehicle before the end of 2010.
- American Opportunity Credit – you could get a tax credit for up to $2,500 for college tuition and related expenses that you paid during the year.