| If you want to get the best tax refund then you need | | | | 4. Smaller Charitable Contributions |
| to make sure you include all available deductions on | | | | People hardly ever forget to claim the big charitable |
| your income tax return. Deductions are the key to | | | | contributions they make, but the little things also add up. |
| reducing your taxable income and getting a tax refund. | | | | For example, if you volunteer at a bake sale |
| However, millions of taxpayers are not up to date with | | | | remember to deduct the cost for ingredients you used |
| current deductions and often miss valuable | | | | to prepare the baked goods. |
| opportunities to save money. Below are 7 commonly | | | | 5. State Taxes Paid the Previous Year |
| overlooked deductions that you may want to include | | | | If you paid additional taxes to the state in the previous |
| on your own tax return. | | | | year then you can also deduct those expenses from |
| 1. Medical Expenses | | | | your current income tax return. You can also deduct |
| If your medical expenses for a single year total 7.5% | | | | state income taxes withheld from your paychecks or |
| or more of your adjusted gross income then you can | | | | quarterly payments. |
| deduct the expenses from your taxable income. | | | | 6. Jury Payments Forfeited to an Employer |
| Although the total percentage required may seem high, | | | | Many employers who continue to pay an employee's |
| if you plan elective surgeries or other pricey medical | | | | full salary while they are serving jury duty request that |
| expenses you can easily meet the requirement. | | | | the employee forfeit their jury payments. If your |
| 2. State Sales Tax | | | | employer has this rule and you served on jury duty this |
| The IRS allows you to deduct the total cost of state | | | | year then you can deduct the total amount from your |
| income taxes or your total sales tax paid the previous | | | | taxable income. |
| year. If you live in an area without state or local income | | | | 7. Cost of Income Tax Preparation |
| taxes then you should deduct your total sales taxes | | | | You can deduct any expenses you incurred to have |
| paid. | | | | your tax returns prepared. This includes tax software |
| 3. College Tuition | | | | and actual tax preparation services. However you |
| The IRS will allow you to deduct up to $4,000.00 paid in | | | | need to include these costs in the tax year you paid |
| college tuition on yourself, your spouse, or any | | | | them. Thus, you would claim your 2005 cost of tax |
| dependents. This break can be especially beneficial to | | | | preparation expenses when completing your 2006 tax |
| taxpayers whose income is too high to qualify for the | | | | return. |
| Hope or Lifetime Learning credit. | | | | |