Commonly Overlooked Tax Deductions

Get the best Credit Tips at Credit Visionary

If you are a recent university grad, this may be the first year you are filing taxes. It’s a major rite of passage in your young-professional life, and it’s your possibility to recoup a few of the money that’s come out of your paycheck the previous year. So as beginner tax filer, and specifically a recent college grad, make sure you are getting the most from your reimbursement by benefiting from these generally neglected tax deductions for twenty-somethings:

Student loan interest paid (even if your parents are helping you out)

One of the few upsides to starting to settle your student loans is that you can subtract the interest you have paid off. I understand for me claiming this deduction indicated the distinction in between a $400 reimbursement and $800 reimbursement this year. Even much better? If your moms and dads are helping you pay back your pupil loans (and they don’t claim you as a dependent), you could deduct up to $2,500 in student-loan interest paid. Technically, since you are the one responsible for the financial obligation, you are the one that gets to deduct it – not your folks.

Job hunting costs (does not count for your first job)

Hopefully you have been monitoring your job-search expenditures (or could dig around for those receipts), due to the fact that you could deduct costs incurred when looking for a brand-new job – things like mass transit costs, cab fares and business cards. One major caution: you’ve searching for a brand-new position in the same profession, and it cannot be for your first task from college. That said, this deduction could serve if you lost your job last year and were looking for work or you were stuck at an entry level position after college graduation and invested part of the year wanting to move up in your industry.

Job moving expenses (does count for your first task)

If you chose to stuff up after graduation and move to the other side of the nation (or a minimum of 50 miles away from where you lived) for your first job, then this deduction is for you. You could apply for a healthy deduction if, for example, you visited school in Boston and moved to Washington, DC for a full-time job (I did this a couple of years ago – I do not recommend the drive down the east coastline in a huge UHaul truck). You could subtract money you spend on moving trucks, parking and tolls – even mileage on your vehicle if you could possibly drove it down as part of the step. However, you couldn’t deduct the pizza you got for your friends when they were helping you relocate your dresser out of your old apartment.

As with any tax deduction, make sure to read up in detail to make certain your circumstance qualifies for these deductions – which you have got the documentation to back them up!