List Of Qualified Tax Deductions Surprises Taxpayer

8:05 PM, Dec 8, 2011   |    comments
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Greensboro, NC -- A lot of us don't want to give Uncle Sam anymore of our hard earned money than we have to.

And when there's a way to keep more of that money in your pocket, wouldn't you take it?

It doesn't require taking on a second job or selling your valuables on Ebay.

All you have to do is pay attention to your taxes.

We found a few breaks you might be overlooking, and it's not too late to earn even more of your money back.

We're talking about tax deductions on your federal return, but not the ones everyone knows.

What about the ones you overlook?

Here's a few from the Kiplinger list.

They could apply to you:

Number 1: One of the biggest overlooked tax deductions --- is for those not working.

On your federal return you may want to deduct state sales taxes instead of state income taxes.

"Especially if you purchased say a new car or a boat or something like that," said CPA Dennis Newman with Sharrard, McGee & Co. in Greensboro. 

We talked to him about the Kiplinger list.

Newman said you must choose between the two.

You have to be able to track your sales receipts.

And you simply take the higher amount.

"So, if you're not working you could do the sales tax. Ohh, that pertains to me," said Erika Levitan-Browne.

Browne spent most of 2011 looking for work. 

Number 2: Did you think about those job search expenses?

"I did not know that because I did, I did drive to an interview," shared Levitan-Browne.

To qualify, Newman said: 

You must have been unemployed in 2011

It includes expenses for travel in your job search

Altogether job search expenses must exceed 2-percent of your adjusted gross income.

Number 3: Most know you can deduct donations to charity but what about expenses while doing charity work?

"Did not know that you could do that," said Levitan-Browne. "That would be something good. I mean if you're doing Meals-On-Wheels."

But Newman said you must have proof.

"The word of warning is document, document, document."

Newman said we're talking about things like mileage for car use.

You must log miles and keep receipts

You may need a receipt from the charity if expenses for it were more than $250.

"Hey anything adds up and it's good," concluded Levitan-Browne. "Nowadays we need the money."

Newman pointed out another overlooked credit comes when you file your state taxes.

If you take the standard deduction on your federal taxes --- the state allows you to still take a credit on your charitable contributions for the year.

If you itemize on your federal - - however - - you can't take this credit on your state.

Good news is there's still time to make those charitable contributions.

They count through December 31st.

Click here -- to see the other overlooked contributions.

 

WFMY News 2; Kiplinger