Now that tax season is upon us, you want to make sure that you’re not missing out on some new, commonly overlooked deductions. It is important to pay what you fairly owe, but by taking advantage of as many deductions as you can, you’re more likely to avoid overpaying. Take a look at some of the little-known deductions, courtesy of Dolans.com:
- Pleasure Trips: if you can document that you made some business contacts or did research relevant to your business while you were away on pleasure, you can enjoy some tax benefits. Just use saved hotel and meal receipts and claim them on your return.
- Energy-Efficient Home Appliances: if you installed an energy-efficient heating or cooling product in 2010 (i.e. a solar hot water heater, geothermal heat pump, etc.) you can receive a tax credit of up to 30% of your cost. The best part is that there is no maximum amount on this credit.
- Private Mortgage Insurance: thanks to a new law passed in 2010, you can deduct PMI payments along with your mortgage interest.
The new deduction only applies to mortgages issued after 12/31/06. Also, the full deduction is limited to homeowners making $100,000 or less. (For those earning $100,000 to $109,000, a partial deduction is allowed.)
- Car Expenses for Medical Reasons: if you needed to drive somewhere to obtain medical care for you or a dependent, you can deduct 16.5 cents per mile. This is just for drives that were “primarily for, and essential to, medical care,” but every little bit can help!
- Commuting Costs for Part-Timers: if you work two jobs (for example, one from 9-5 and another from 6-10), you can deduct the costs of commuting (about 50 cents per mile) from one job to another since it’s considered a legitimate deductible business travel expense.
To learn about more little-known tax deductions that you could benefit from, head over to Dolan.com’s 11 Deductions to Save Big on Your Tax Bill.