Don’t miss these often overlooked tax deductions and credits when you file your tax return this year
By Katelyn Washington – Kiplinger Report
The 2024 tax season is underway, and unless you are granted a tax extension by the IRS, 2023 federal income tax returns are due on April 15 this year. Don’t miss out on these most overlooked tax deductions and credits when you file. If you qualify, claiming the deductions and credits on this list could lower your tax bill or — in some cases — result in a tax refund.
List of overlooked tax deductions
Some of the tax deductions below require you to itemize deductions. While most people take the standard deduction, itemizing can result in a higher deduction for some. To determine which option is best for you, calculate all your allowable itemized deductions. If the total is higher than the standard deduction for your filing status for the 2023 tax year, itemizing deductions might be a good option.
Tax-deductible charitable contributions
If you itemize deductions, don’t forget about all the charitable contributions you made throughout the year. These can include cash, property (for example, art and home furnishings), and even out-of-pocket expenses incurred for volunteer work. If you had to drive for your volunteer work, you can deduct expenses one of two ways.
- Deduct the actual cost of gasoline.
- Deduct $0.14 per mile.
Just remember to keep receipts from charitable organizations and good records of your contributions and your mileage (or fuel) costs, and keep in mind that not every donation is considered tax-deductible. To deduct a contribution on your tax return, the charity must be an approved tax-exempt organization. You can use a search tool search tool on the IRS website to see which organizations qualify.
Additionally, the IRS imposes additional requirements when donating gifts worth $250 or more. IRS Publication 1771 details requirements for making tax-deductible charitable contributions.