Can I Deduct It?
Between one year and the next, every single tax form is rewritten and reprinted. They are changed to reflect new tax rates, adjustments in laws and any number of other things that affect the taxes we pay every year.
With all this going on, is it really that strange to learn that, often, standard tax deductions get left out of the paperwork? Between the 2005 tax year and the 2006 tax year, at least three deductions were shuffled right out of print for one reason or another. What this meant to many tax payers was that the deductions simply no longer existed, because they were relying on printed paper for their information.
Each year, actual rates, deductions and credits change. The only way you can be entirely certain you have all the information you need is to use tax preparation software that is fully updated and well-respected because it includes all the information you need. The best pieces of software will help you find all the deductions and credits or other tax breaks you're looking for, even if they weren't included in the paper version of the forms that everyone else is using.
Beyond using good tax preparation software, the following three deductions have been the most consistently "missed" that you'll want to look into.
1. Jury Pay - We're all up for jury duty once a year. If you've served on a jury and turned over your jury fees to your employer, you're allowed to deduct that amount from your taxable income.
2. Educators' Expenses - This one has been left off the paperwork some years, so don't miss out. Teachers and teacher's aides can deduct up to $250 they spent for classroom supplies.
3. College Tuition - Another one that's been left off. This one allows you to deduct up to $4,000 of college tuition that you paid for yourself, your spouse or a dependent.
There are currently more than 120 tax deductions and tax credits available to tax payers. Unless you're willing to research for days on end (seriously), definitely take a look at software like TurboTax that will help you find all the tax breaks you're entitled to.