October 21, 2014 4:34 am

The Top Three Tax Deductions Most Commonly Missed By Filers

With tax season upon us and in full swing, people the country over are scrambling madly trying to come up with the most amount of money deductible from their state and federal taxes. Everything from the Earned Income Credit, to money spent in tandem with business activities, are all being examined as closely as possible in order to squeeze out every last drop of savings imaginable.

While the lion’s share of deductibles are standard, and used by virtually every person that qualifies, there is a large, untapped pool of deductions you may have missed. While you may not be eligible for all of them, chances are that you will find at least one that you have overlooked.

Refinance Points

Have you recently refinanced your home and opted to pay points for a lower interest rate? Not only is this a smart move for long-term savings, but these points can also be claimed on your tax return. Refinance points can be claimed on a monthly basis throughout the life of the loan. So if you refinanced your home in June of 2013 for a 20-year period and paid $2,400, you can deduct $70 to cover the seven months that have passed prior to the end of the year.


Health Insurance Premiums

Regardless of whether you work for yourself or an outside business, chances are you can deduct the premiums you pay for your health insurance. If you are self employed, you can deduct 100 percent of these premiums. However, if you are employed by another entity, your premiums would be added to your overall health expenses. If these expenses exceed 7.5 percent of your total, adjusted gross income, you can deduct them.


Job-Hunting Costs

If you are one of the millions of Americans still out of work, expenses related to job hunting can really add up. Perfect examples are transportation expenses, food and lodging if you have an overnight stay and the cost of printing resumes or business cards. For a full list of these types of deductions, visit the IRS’ website for more information.


While tax season itself is rarely a time to actually get excited, finding additional deductions that can save you tons of money is. Do you have any deductions you regularly use that you feel should be on this list? Please let us know in the Comments section below!