It is estimated that over two million Americans overpay on their taxes every year simply because they do not know some of the tax deductions they are eligible for. There are over two hundred possible deduction clauses in the United States Tax code, but with all the other complicated information included in the tax code, sometimes even the professionals miss possible tax breaks for their clients.
Some of the more bizarre tax deductions available include a break on the money that foreign gamblers make on U.S. horse and dog races and the deduction one can make for the cost of shipping their pet after moving for work. While these tax breaks may be for a very select few, there are four more that every-day citizens may be able to take advantage of after learning of them. Some of the more helpful or practical may include tax breaks on:
- Job Search Expenses. To qualify for this tax break you cannot seek out a new occupation, allow for a length of time to pass between losing a job and looking for a new one, or be a first-time job seeker.
- Tax Preparation Costs. For the small business owner especially, or for any independently employed individual, this break is designed to help mitigate personal costs even more.
- Fostering a Pet. If you choose to become a foster home for pets while they await a permanent home, you can deduct expenses concerning your temporary pets form your taxes.
- Private Mortgage Insurance. While most people know about the deductions for their mortgage interests, few people know that they can also receive a tax deduction on the cost of their private mortgage insurance.
The above short list is barley a scraping of the most underutilized tax breaks that are available to individuals and companies. To find out more, talk with a certified tax professional in your area.