Every possible tax deduction can help when your money is tight. Yet many available legal deductions go unclaimed each year simply because most taxpayers still don't know the breaks exist. From eyeglasses to airline baggage fees, you might qualify for at least one often-forgotten deduction — and maybe more than one.
The Internal Revenue Service allows you to take the cost of certain items, known as itemized deductions, off your tax bill if you qualify. You should itemize deductions if they add up to more than your standard deduction, the IRS advises.
Itemizing also makes sense if you can't use the standard deduction. Did you have large uninsured medical and dental expenses, or casualty or theft losses? Or pay interest or taxes on your home? Or have large unreimbursed employee business expenses? Or make large charitable contributions?
For filing your taxes, you itemize deductions on IRS Schedule A. If you itemize, don't overlook these categories:
Job hunting
Did you spend out-of-pocket to travel to interviews, or shell out for stationery for résumés and cover letters? Deducting these items can make a big dent at tax time.
You don't have to be officially unemployed, either: Expenses that you incur searching for a better job, even while fully employed, qualify. Other applicable deductions include food and lodging for overnight stays, cab fares and fees you pay to employment agencies.
Moving
If that new job is your first job, you may be able to deduct incurred moving expenses. To qualify, your first job must be 50 or more miles from your previous job or residence, and you must work full-time for about 39 of the first 52 weeks in your new location.
If you qualify to deduct the cost of moving and if you drove your own vehicle for the move, deduct 23.5 cents a mile plus parking and tolls. If you kept excellent records and receipts, you can instead deduct actual driving expenses such as gas and oil.