Often Overlooked Tax Breaks

There are many tax deductions and credits that are overlooked. New for this year only is the long distance tax credit. Other overlooked deductions include work supplies and expenses, child care costs, medical expenses, and more.

The long distance tax credit is a one time only tax credit that is for this tax season only. The credit can be taken as a standard deduction, or by manually adding up the tax payments on your long distance bills. In almost all circumstances, the standard deduction will be larger. By taking the standard deduction, no paperwork needs to be provided to prove that you even paid taxes on long distance. The standard deduction gives a thirty dollar credit for a family of one, forty dollars for a family of two, fifty dollars for a family of three, and sixty dollars for a family of four or more.

Many people in the work place either have to buy their own supplies, or choose too buy supplies that will aid them during their workday. Many of these supplies and other work related expenses can be deducted. This is an even bigger deduction for teachers who can also claim expenses related to the classroom, such as buying pencils and paper for student use.

If you are like many Americans who have to balance work and caring for a child and need to send your child to a child care center or a paid friend, you can get a deduction for all child care costs and any expenses related to that child care.

Many Americans have to pay a large amount of money each year for medical expenses, co-payments, and medications. To use this deduction, your medical expenses need to be equal to or greater than seven percent of your gross income. That seems like a lot; however there are many things that can be used as a valid deduction. Any dental work done, eye care, including corrective lenses, medications, doctors visits, hospital bills, and all of the above can be combined with your spouse's expenses and any of your dependants.

Any major purchases made can be deducted for a tax credit. The IRS considers an automobile purchase, all terrain vehicle, snowmobile, and several other items a major purchase.

Many Americans have a loan of some sort. In the case of many loans, the interest and other fees can be deducted off from your tax bill. Some mortgages can use these deductions as well as most education-related loans, as well as several other types of loans.