What Can Be Used as a Tax Deduction?

Make every penny count on this year's tax return.

Thousands of taxpayers do not get the full tax refund that they are entitled to each year. Overlooked income tax deductions are among the biggest reasons for this. Get the refund you deserve by making the most out of deductions.

State Taxes

Taxpayers may choose to deduct either state income taxes or state sales tax on a federal tax return. The sales tax method is primarily beneficial to those living in income tax-free states.

Charitable Contributions

Helping those in need pays off in more ways than one. Make cash and non-cash contributions pay (literally) by itemizing them as deductions on Schedule A.

Education

The federal government created tax benefits for education in an effort to help offset the heavy burden of continuing education. Taxpayers may choose to either claim one of several education tax credits or use the tuition and fees deduction. The cost of tuition and other qualifying expenses such as the cost of books and computer equipment may be deducted.

References

• Kiplinger: The Most Overlooked Tax Deductions
• Internal Revenue Service: Tax Topics Itemized Deductions