Tax filing instructions Five deductions that are often ignored

Tax filing instructions Five deductions that are often ignored (Alberta Times) Tax experts remind that during the tax filing season, properly utilizing the tax exemptions and exemptions in the current tax law will...

(Alberta Times)

Tax experts remind that during the tax filing season, properly utilizing the exemptions and exemptions in the current tax law will be the focus of this year's tax filing. However, due to the cumbersome tax laws, many taxpayers may not know which deductions are applicable to them? To this end, "USA Today" compiled the following five deduction items worth paying attention to so that taxpayers do not pay more taxes because they neglect to file:

1. Retirement savings deduction: The IRS stipulates that every young American can save $5,000 in an individual retirement account (IRA) in 2012, but if you are over 50 years old, this amount increases to $6,000. The savings are then deducted from your income. This provision will help older taxpayers save more for retirement.

2. Job search costs: Did you pay a commission to a human resources agency or pay to join a professional network organization during the job search process? Did you spend any money (such as transportation expenses, resume preparation expenses, etc.) to attend the interview? These job search expenses are deductible.

3. Student loan interest: Even if your parents help you pay for your student loan and act as your guarantor, since you are the lender, this part of the expenditure can be claimed as a deduction. If you are also a dependent of your parents, or the borrower is your parent, then they can claim the deduction.

4. Glasses and contact lenses: Prescription glasses and contact lenses, like wheelchairs and hearing aids, can be deducted. But if the glasses purchased are not for reading, but are popular glasses with pink plastic frames, the IRS may not approve the deduction.

5. Charitable donations paid out of your own pocket: For cash donations, just attach supporting documents, but don’t forget to buy small things for the school fundraiser, such as paint, posters or green bean soup ingredients, and don’t forget the fare to and from the charity unit, you can deduct 14 cents per mile.

If readers have any questions, you may wish to ask any qualified tax advisor, who will tell you more deduction items, or you can check the "Easily Overlooked Tax Deductions" page on the IRS website, which also has similar tax tips.