5 Unreimbursed Expenses You Can Deduct

Choosing to itemize your deductions can provide an opportunity for taxpayers to maximize their tax refund. However, figuring out which expenses are deductible can sometimes be tricky. Some of the most often missed deductions may be taking full advantage of unreimbursed expenses, which are deductible. The following is a list of some of the most common:

1. Health Expenses

If your medical expenses for the year amount to 10% or more of your adjusted gross income, you can deduct the portion over 10% on your tax return. 10% may seem like a steep threshold, but this includes a wide variety of medical expenses, such as:

2. Charitable Contributions

Any donations you make to a charity or a church are tax deductible, but it isn't just these straight monetary contributions that can help you out around tax time. Any expenses that go into charitable gifts are also deductible. For example, if you bake six dozen cupcakes for a church bake sale, the money you spent on ingredients is deductible. The miles you drive while you're volunteering for a charity may also be deductible.

What if you have to leave the kids at home while you're out volunteering? The cost of a babysitter may be eligible to be included.

3. Job Hunting Expenses

If you decided to hit the refresh button on your career during the preceding tax year, some of the expenses associated with the job hunt may be tax deductible.

To be eligible the expenses must equate to at least 2 percent of your gross income. You also must be looking for a job in the same field as your previous job.

These expenses might include things like the cost of traveling to and from job interviews and the money it takes to print professional-looking resumes. More can be found here.

4. Sales Tax or State Income Tax

You can choose to deduct either sales tax or state income tax from your federal taxes. In states without a state income tax, it is worth holding onto your receipts for big-ticket items. If you bought a new car, new kitchen appliances, an expensive piece of jewelry, or something else in which you were charged considerable income tax, the amount paid may be claimed when filing with the IRS.

Even if you live in a state that has income taxes, you still might want to deduct your sales tax instead of the state income tax. You can always prepare your return both ways to see which method saves you the most money. Alternatively, you can use our online tax preparation program, which will automatically help identify the deductions that will lead to your biggest refund.

5. Moving Expenses

If you relocated to start a new job or if you moved in order to embark on a new position with your current employer, your moving expenses might be able to go on your tax return. You just have to meet a few requirements:

Some moving expenses which you may include as part of this deduction are, the cost of transporting yourself and your possessions, as well as the cost of renting a storage unit for up to 30 days. The best part of this deduction is moving expenses are "above the line," which means you can deduct them even if you choose to take the standard deduction on your tax return.

With each of these expenses you want to make sure to hold onto all of your receipts. If you choose to file with E-file.com we will assist you with identifying which expenses are deductible so that you can submit your tax return with confidence.