MOBILE, Ala. (WPMI) Whether you love it or hate it, tax season is here. It's time to ruffle through a year's worth of papers and receipts for the sake of Uncle Sam.
When filing tax returns, missed deductions can be costly. Mobile CPA, Rocky Wells, says various mileage deductions are most commonly overlooked, including the costs associated with moving for a new job.
"Even job hunting expenses, the mileage associated with looking for a new job would be deductible at 55 and a half cents a mile," said Rocky Wells, of Anderson and Wells, PC.
"Medical expenses and medical travel is deductible at 23 cents a mile. Plus any other travel you may have like airline fares or hotel rooms if you have to go out of town for medical treatment. Also charitable mileage. If you're a volunteer for a charity and you have mileage associated with that, that would be deductible 14 cents a mile," said Wells.
When it comes to charitable gifts, remember, the little things add up, too.
"People don't think about like the ingredients used to make something for a bake sale for a school fund or a church. The ingredients would be deductible as a charitable contribution," said Wells.
Don't overlook tax breaks of mortgage points either.
"If you get an original home mortgage, those points are deductible the year you get the mortgage. That's usually a fairly substantial deduction," said Wells.
Students, pay attention to this next one. Did you know you can write off the interest on your student loan even if that loan was obtained by your mom and dad? And parents, there's deductions for you too.
"There's a credit for child care costs and typically people understand that they get a credit for a young infant. But also, once a child starts attending school, there's a credit for before and after school care. Also day camps, they qualify for child credit," said Wells.
The IRS also provides a deduction for either the amount of state income tax you pay or the amount of sales tax you pay, whichever is greater.
The most important thing you can do to help yourself, is to keep good records and save all receipts, bills and mileage logs. To be safe, save your tax records for at least three years.
