Overlooked Tax Deducations

It seems that knowledge really is power, especially when it comes to preparing your taxes. Tax advisor Barbara Matthews with H&R Block says there are at least five commonly overlooked deductions that could save you money.

First, medical expenses:

"There are certain limitations that you have to meet on medical expenses, but of those out-of-pocket expenses can be a deduction for you."

She says charitable contributions such as to churches or other non-profit organizations are another one.

"Along with that many people may not realize that if they do any type of work through a charitable organization then their mileage is a deduction."

Next, expenses for job-seeking:

"And here again their mileage is a possible deduction. Getting those resumes ready and mailed."

With business in mind, she says entertainment expenses can sometimes also count.

"We mainly see entertainment expenses with business people. So, if they take their client out to dinner for a business purpose then that could generate a deduction."

Meanwhile, Matthews says childcare can also be counted.

"One good thing about the laws on this, this year is that changed. Before this year there was a limit of $2,400 for child expenses that could generate a credit. That's gone up to $3,000 for this year."

Speaking of childcare, remember those advance child tax credit checks that many people received last summer. Well, Matthews says if you received one you must indicate the amount of that check on your taxes. Ultimately she says this will determine how much of a child tax credit is still available to you.

If you can't remember the amount of your advance child tax credit check just call 1-800-829-1040.

Also visit: www.entrepreneur.com and moneycentral.msn.com for more information on commonly overlooked tax deductions.


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