5 commonly overlooked tax deductions

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Friday, February 17, 2017
Overlooked tax deductions you might have missed
Overlooked tax deductions you might have missed

It's tax season and by now, you should have received your W-2 forms from your employer.

But before you file, you'll want to make sure you don't miss out on some of the biggest overlooked tax deductions.

1: State sales taxes

According to Kiplinger, this is really important if you live in a state that does not impose a state income tax. That includes Texas.

What this means is you'll be able to write off the sales taxes you paid in 2016.

Now, you don't need to pull out a bag full of receipts. Instead, the IRS has tables that show how much people from each state can deduct based on your income.

2: Out-of-pocket charitable deductions

While it's hard to overlook the big charitable gifts you made last year, all the little things add up too.

You can also write off out of pocket costs you paid while doing work for a charity. For instance, ingredients for casseroles you made for a soup kitchen.

For this -- you'll want to keep your receipts.

And if you drove your car for a charity, you can deduct 14-cents per mile, plus parking and tolls paid.

3: Student loan interest paid by mom and dad

As long as you're no longer claimed as a dependent, you can deduct up to $2,500 dollars each year.

4: Job hunting costs

If you were looking for a job in 2016 you can deduct transportation expenses, including 54 cents per mile for driving your own car, plus parking and tolls.

Whatever it cost to print resumes, business cards and postage, as well as food and lodging if you had to stay away from home for a night.

5: Airline baggage fees

Now this one only counts if you're self-employed and traveling on business. If you fall into that category -- then, yes, you can write off baggage fees to your deductible travel expenses.