Tax deductions are available for all qualified individuals and families. However, the government does not often broadcast all available deductions for everyone. If you are unaware of some of the deductions that you may qualify for you may be getting a smaller refund than you deserve. Even electronic tax preparation software often misses some of these unusual tax deductions. Before deducting any of these items from your taxes talk with a qualified tax professional to ensure you qualify for the deduction.
Things You Will Need
Determine if you are eligible for the Earned Income Tax credit. This credit is designed to help families with low to moderate incomes. This credit is offered based on income and child requirements. The IRS offers a form to help you determine if you are eligible for this credit. You can visit the IRS website here to find out if you qualify. The maximum refund offered for this credit is $3,043 for one child and $5,657 for three or more children.
Total the amount of money or items that you donated to charity. Any charitable donations, such as clothing, household items, food, or money can be added into this figure. Charitable donations can be deducted from the amount of taxes that you owe. IF you choose to use this deduction method, take care. The IRS will want to see written proof you actually donated the money or items if you are audited. Many standard tax software skips this deduction so if you use a tax software make sure to locate the section for this deduction on your own.
Calculate mileage that you used with your car for work purposes. If you keep track of the miles you drove to and from work the cost of the gas can usually be deducted from your taxes. There are some regulations and restrictions on this. If you do not own the car you cannot claim millage. If you cannot prove that you drove to work during that time then you also cannot deduct the millage. If you bought the car in this tax year you can sometimes deduct the cost of the car as well.
Calculate the amount of money that you spent on making your home more environmentally friendly. In most cases the money that you spent on your home can be deducted from your taxes. Of course, you have to own the home that you updated to claim this deduction.