What can I deduct on my Taxes?

With the tax season fast approaching we thought we would create a list of the top  missed tax deductions. Take a quick look and you could save yourself thousands!

1. Charity Donations

You know how the saying goes: “If you look after the cents the dollars will look after themselves”. The small things add up. If you make any charitable donations through your payroll, ask your employer for a statement of your payments. These donations can be deducted from your taxes. Most people know that money given directly to charities is tax deductible, but not so many know about claiming back indirect donations.

If you donate your time doing meals or wheels, the cost of your gas cost can be reclaimed at the rate of 14 cents per mile.  Make sure that you keep a note of the distances you are travelling. Alternatively if you help making food for a charity, such as a soup kitchen, the cost can also be offset.

2. Military Travel Expenses

If you are in the National Guard or a reservist you can often deduct a number of  travel expenses. To be eligible, the expenses must be for travelling to drills or meetings and must be over 100 miles from your home, with an overnight stay. If you do qualify, you can deduct the cost of any hotels,  50% of any meals and 55 cents per mile if you are using your own car.

3. Education Expenses

With the economy in such a bad shape and many people being made unemployed, now is a great time to invest in your education. Not only might you save your job but you can also claim as much as $250 on items  that you have bought to educate yourself.

4. Security Deposit Box Fees

Do you have a security deposit box at your local bank? If you do and you use it to hold your investments you are eligible to claim this amount as a tax deduction. Most people do not realise that they can claim this fee back and it often gets overlooked.

5.  Alcohol and Drug Abuse Treatment

Another often unknown deduction is being able to claim alcohol and drug treatment expenses as a tax deduction. With the number of people going to rehabilitation increasing, it’s a bitter sweet deduction to claim. Do you have any additional tax deductions that are not widely known, share them with us in the comments below.