Tax time is winding down. For most of us who've yet to file a return, the reason for the delay is that we owe Uncle Sam. We might be able to shave some off that IRS bill, however, by making sure we take every tax deduction, credit or other income adjustment possible. Here are 10 tax breaks -- some for itemizers only, others that any filer can claim -- that often get overlooked but that could save you some tax dollars.  | | 10 tax breaks | | | |
1. Additional charitable gifts
Everyone knows that giving to your favorite charity is good for your soul, good for the organization and good for your taxes if you itemize. But some charitable gifts never get counted on many tax returns. These are expenses you incur doing charitable work.
You can't deduct the value of your time spent volunteering, but if you buy supplies for a group, the cost of that material is deductible. Similarly, if you wear a uniform in doing your good deeds, for example as a hospital volunteer or youth group leader, the costs of that apparel and any cleaning bills also can be counted as charitable donations. So can the use of your vehicle for charitable purposes. "If you use your car in performance of providing charity services, you can deduct 14 cents per mile plus parking or toll fees you may have paid," says Bob D. Scharin, RIA senior tax analyst. This includes such things as delivering meals to the homebound in your community or taking the Scout troop on an outing, while of course wearing your freshly cleaned uniform. 2. Moving expenses
Most taxpayers know that they can write off many
moving expenses when they relocate to take another job. But what about your first job? Yes, the IRS allows this write-off then, too.
"We generally think of this as a break for someone who has a job change, because it must be job-related to be claimed," says Scharin. "But a recent college graduate who gets a first job at a distance from where he or she has been living is eligible." The general test is that the new job must be at least 50 miles farther from your previous residence than your last office was. That means if you lived 15 miles from your old job, the new workplace must be at least 65 miles from your old home. replacecontent-tcm:8-4564 "For someone who was not previously working," says Scharin, "the test would be that the new job be at least 50 miles from the person's old residence." |