Retirement

Tax Deductions: Catch Them All!

Millions of us overpay our taxes each year because we overlook common deductions that could save us money. Regardless of whether you’re a Day-to-Day Decision-Maker sifting through lunch receipts, or a Confident Planner prepping for your regular review with a CPA, you’re liable to miss a deduction or two. Or 10. Beyond the usual suspects, there are so many overlooked deduction opportunities that are hiding in plain sight, like Pokémon Go® creatures, just waiting to be nabbed. To help you catch the many tax breaks you’re entitled to, here’s a guide to some of the most frequently-missed write-offs. Happy hunting!

SMARTYPIE

Loves bookstores, thrift shops, and pizza joints

Student loan interest for higher education is deductible up to $2,500. And if you’re working, the cost of books and other educational materials required for your job is deductible.

CAVITRAVA

Hides in vending machines and soft drink aisles

There’s a bright side to tooth decay. If dental and other medical bills exceed 7.5% of your adjusted gross income, they’re deductible (as long as they’re not paid by insurance or a flexible spending account).

SNAKEYES

Frequently seen at race tracks, casinos, and pawn shops

Gambling losses are deductible up to the amount of your winnings. But to claim your losses, you have to declare your winnings.

JOBFISH

Haunts employment search sites

If you’re trying to land a new position in your current profession, you can deduct search-related expenses, like fees for resume preparation and outplacement services.

VOLUNTRIX

Easily recognized by name tag and big smile

Time and expenses involved in volunteer activities can be deducted—such as mileage for meal delivery or the cost of art supplies for the kids’ fundraiser. Be sure to check the tax-exempt status of the organization.

S’MORASAUR

Drawn to campfires and poison ivy

Summer camp is a blast—from nature hikes to marshmallow treats—and it may provide a deduction. If you send your kids to day camp, you may be able to claim child-care credits.

REFIFOFUM

Watches DIY shows when not touring open houses

Did you know you can deduct the points paid when you refinance a mortgage? (And don’t forget about your mortgage interest!)

HORDLER

Craves dark spaces and shiny objects

If you store investment documents in a safe-deposit box, the rental fees are deductible. But if you mix in your Pokémon cards, gold, jewelry, and other valuables, it won’t qualify.

KHAKIT

Hangs around closets, guard shacks, and ERs

Do you have to wear uniforms for work? Clothing you can’t use for everyday? Then you can probably deduct the cost to buy and clean them.

PACKAMANDER

Known to swarm moving vans and UPS stores

If you relocate for your job, Uncle Sam may help you pay for the moving expenses, such as the cost of packing supplies, professional movers, and mileage. Some restrictions apply, so check it out.

And now that you know where those delightful little money-savers hide, imagine how tax-savvy you’ll be going forward. As always, the smart move when preparing your taxes is to consult with a financial expert who can recommend tax strategies that are right for you.

* Guardian's Living Confidently survey, 2017.

turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/The-10-Most-Overlooked-Tax-Deductions/INF12062.html

turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/9-Things-You-Didn-t-Know-Were-Tax-Deductions/INF26934.html

www.hrblock.com/HRBlock/PressCenter/Assets/PDF's/Dont%20Forget%20These%20Tax%20Deductions.pdf

www.gobankingrates.com/personal-finance/49-special-tax-deductions-dont/1/

Insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values. This material is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Consult a professional regarding your individual situation.

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