There are several tax deductions that people often overlook. Often times getting the deductions require more work because you will have to keep up with your receipts and add them up but the reward is the refund that you can potentially receive. See four of the most overlooked tax deductions below.
Earned Income Credit is taken advantage of most by families with a lower income thresh hold. It is astounding that of all those that qualify for it 25% of those people dont know that they qualify and miss this tax credit. This credit is a refundable credit and not a deduction. This credit is for those families that are lower income workers now, this can be for those families that have taken a pay cut at work, worked fewer hours at work than they did formally and those that have lost their jobs.
The income that you receive will depend on your family size, your marital status and the amount of money that you made. If you are one of those 25% that didnt file an earned income credit and you could have filed then you are in luck because you can file anytime during a year to claim the credit for up to three years prior.
State Tax deduction can be added if you had to pay state tax in the spring and this includes the state tax that is usually withheld from your pay check. Mortgage Refinancing points can be deducted when you refinance your mortgage but, you have to deduct the points over the life of your loan. That means that if you have a 30 year mortgage then the amount of points that are given for one year are what you are allowed to deduct. If you happen to repay the loan or sell the house you can then deduct all the points that havent been deducted unless you are using the same lender to refinance.
Jury Pay is deductible if your company continues to pay you salary for going to jury duty but they ask for the share of the jury duty fees back. The IRS will expect for you to file taxes on the money that was paid to you but if you gave the jury money back then you want to deduct that amount so that you arent paying taxes on money that you didnt keep.
Hopefully these overlooked tax deductions and credits will help you to receive the biggest refund that you deserve, it just takes a little tax preparation to know what to look for.