Maximize your Mississippi tax return with these 8 often-overlooked deductions
If you are wondering how to get the most money back from your tax return this year, we are here to help. We’ve compiled a list of eight deductions that are often overlooked, according to experts from TurboTax and the IRS.
Here’s how to maximize your return.
8 tax deductions that are often overlooked
Out of pocket expenses for charitable donations
Sure, you made a big donation here or there with cash or check, but don’t short yourself on the other things, too.
“Ingredients for casseroles you regularly prepare for a qualified nonprofit organization’s soup kitchen, for example, or the cost of stamps you buy for your school’s fundraiser count as a charitable contribution,” said a TurboTax expert.
You can even deduct 14 cents per mile if you used your car for charity.
Moving expenses
If you are military personnel and you had to relocate, you can deduct any moving expenses on your taxes.
According to TurboTax, “You can claim the costs of travel and lodging for you and your family, moving household goods, and shipping your cars and your beloved pets.”
Earned Income Tax Credit (EITC)
This one is technically a tax credit, not a deduction. However, 25% of those who are eligible for this credit fail to claim it, according to the IRS.
The EITC credit “helps low- and moderate-income workers and working families with incomes below $39,783 and childless workers with incomes under $14,590,” according to a fact sheet from the IRS.
Workers in this category are often independent contractors, farmers or business owners, but some people who are retired with disabilities are eligible.
Refinanced mortgage
If you recently refinanced a home, you can deduct points for the life of the loan. Mortgage loan “points” are a form of prepaid interest that can help you “buy down” your interest rate, as explained by U.S. Bank.
So, here’s the math: if you signed a 30 year mortgage, you can deduct 1/30th of the points from the mortgage for that year.
That’s about $33 for every 1,000, but it all adds up, right?
Jury duty pay
If you had jury duty, but your employer paid for your whole day and requested your jury duty earnings, you can actually deduct that from your taxes.
“You have to report those fees as taxable income. If you give the money to your employer you can deduct the amount so you aren’t taxed on money that simply passes through your hands,” according to experts at TurboTax.
Energy-saving tax credits
There are even some deductions you can take for certain home improvements you make, namely, ones that save energy.
“New energy-efficient improvements qualify, including insulation, exterior windows, exterior doors, water heaters, heat pumps, central air conditioners, furnaces and hot water boilers,” said a representative with the IRS.
The credit is limited to $500 or less, depending on the improvement made.
Child tax credit
If you have a child under 17, you may be eligible for a $1,000 credit for that child. This one often gets confused with the child care credit. Because it is not a mere deduction, even unemployed parents can claim the money.
Medical and dental expenses
If your medical or dental expenses for the year exceeded 7.5% of your adjusted gross income for the year, you can deduct that from your taxes. However, that only means expenses not reimbursements by insurance or from your doctor.
If you need to calculate this, use the Schedule A (Form 1040) form.
Do any of these deductions surprise you? Let me know in the comments or email me at cmadden@mcclatchy.com.
