Tax season is here, and we know it can be stressful! Before you hit that “Submit” button on your tax returns, be sure to learn about these often overlooked tax deductions.
Child & Dependent Care
If you paid for childcare last year for your child or dependent under the age of 12, you likely qualify for a childcare credit. This credit also applies if you’re paying someone to care for a spouse or dependent if they are incapable of self-care (like a home health nurse). In most cases, you’ll need the provider’s social security number or taxpayer ID to include on your return.
Job Searching
If you spent last year hunting for a job, your related expenses may be tax-deductible. Professional development, resume prep, travel expenses for interviews, and even any fees you may have paid to an employment agency can be claimed as deductions. There are limitations to this, but exploring this deduction may help ease the financial burden of job hunting.
Medical Expenses & Health Savings Accounts (HSAs)
Medical expenses can be deducted from your taxes, but did you know other things like travel expenses to and from appointments, medically-justified home improvements, and even some alternative treatments may be deductible? Any contributions you may have made to your HSA may also be eligible deductions.
Home Office
Do you work from home? If so, the IRS allows taxpayers to claim a portion of their home-related expenses, such as mortgage interest, property taxes, utilities, and even a percentage of rent. The deduction is based on the calculated percentage of the home used for business, offering a great way for self-employed and remote workers to recoup some of the expenses that come with working from home.