- Days left

7 Most-Missed Tax Deductions and Credits

From job search expenses to gambling losses, don't overlook these ways to cut your tax bill.

×
A magnified 1040 tax form for filing yearly income taxes
Alamy
By Lisa Greene-Lewis

Do these deductions and credits apply to you?

Tax deductions and credits can save you money at tax time, but many taxpayers miss them because they don't realize things they do in their everyday life can lower their taxable income. Here are seven of the most-missed tax deductions and credits you don't want to overlook.


Increase your money and finance knowledge from home

Building Credit from Scratch

Start building credit...now.

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

TurboTax Articles

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Video: How to Claim the Affordable Care Act Premium Tax Credit (Obamacare)

The Affordable Care Act Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. If you qualify for the tax credit, you can claim the Premium Tax Credit throughout the year to lower your monthly health insurance premiums, or claim the credit with your tax return to either lower your overall tax bill or increase your tax refund.

Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.

What Is Schedule H: Household Employment Taxes

If you hire people to do work around your house on a regular basis, they might be considered household employees. Being an employer comes with some responsibilities for paying and reporting employment taxes, which includes filing a Schedule H with your federal tax return. But even if you have household employees, filing Schedule H is required only if the total wages you pay them is more than certain threshold amounts specified by federal tax law.

Add a Comment

*0 / 3000 Character Maximum

16 Comments

Filter by:
jaidacole

I have a little tip for saving on taxes. Move to a state with lower income taxes. This one step can save you thousands a year, and you don't have to change any other aspects of your life. Also invest in tax deferred assets. Even life insurance can grow tax deferred and pay you dividends. I have a nice little policy from LifeAnt that should net me about 4-6% tax deferred over the long run. The more money you keep from the government, the more you have in the end. Its not even about being creative, the information is all right here for us, its just about being smart.

April 01 2014 at 11:04 PM Report abuse rate up rate down Reply
SPQR

You all must not have heard that the President has and is focusing on helping what is left of the middle class....please...help is on the way !!!!

Warren Buffet is going to help everyone with something I heard him say he would pay more taxes!!!! Just grab a beer and watch tv and relax everything will be ok.

April 01 2014 at 9:03 PM Report abuse rate up rate down Reply
Robert

Look, I got married last year, it didn't work out. She left me and took everything I had. May I write that off as a gambling loss? ... or an education deduction - I learned more about human nature in 7 months than I learned in 5 years of college.

April 01 2014 at 4:29 PM Report abuse +6 rate up rate down Reply
2 replies to Robert's comment
SPQR

I think that falls under natural disasters ! Like being hit by a hurricaine and not being covered by insurance

April 01 2014 at 9:04 PM Report abuse rate up rate down Reply
annrcpa

Unfortunately unworkable marriages do not constitute gambling or education losses. Did you get divorced before December 31? If so, you will have to fill as a single with only the single standard deductions and exemptions. Sorry, I was in a disasterous relationship once too, There just is no tax advantage. Unless when she cleaned you out you reported to the police and they wrote up a report. Then, this is stretching it a little, you could file for a deduction of casualty and theft losses.

April 03 2014 at 2:02 PM Report abuse rate up rate down Reply
house123456james

**** TAXES!!!!!!!!

April 01 2014 at 4:23 PM Report abuse -1 rate up rate down Reply
otwpalm

It is past time for a major overhaul of our tax system. This year's forms are the worst I have seen in 50 years. The easy solution is to vote all incumbants out at every election. Sooner or later the thieving ba$tards will get the message.

April 01 2014 at 2:35 PM Report abuse +6 rate up rate down Reply
bill perry

Revise the MODEL "A" Tax system we have today. Help everyone earning less than $40,000 a year. NO TAX. Eleminate taxes on SS income. Everyone should pay FICA taxes including Millionaires, but if they earn more than $150,000/year at retirement, they should not be allowed to collect SS payments. It would solve the SS problem, reduce the deficiet and make many Americans Happy that they live in AMERICA. In addition, Congress must abide by these rules. NO MORE KINGS in AMERICA... Bill Perry

April 01 2014 at 1:01 PM Report abuse +1 rate up rate down Reply
4 replies to bill perry's comment
Max Lilly

Death and Taxes, hmmmm, choices, whether you are Union or Confederate, taxes can make WAR and lose 650,000 young men's lives.

April 01 2014 at 12:53 PM Report abuse +2 rate up rate down Reply
knbreid630

Watch out for that gambling deduction...if your winnings put you into the next higher bracket, even the loss deduction won't help much...Higher payback percent !!

April 01 2014 at 11:06 AM Report abuse +2 rate up rate down Reply
bdgrizcp

If your bounceback college grad moved back in, you may be able to claim Head of Household status (irrespective of your filing status) and pick up 1/2 a deduction. This works if he/she files their own return.

April 01 2014 at 9:23 AM Report abuse +1 rate up rate down Reply
lou2school

Oh please---Unless you own a home and pay a lot of mortgage interest and high property taxes or you have an astronomical amount of medical bills that are not covered by health insurance, you may find that all these deductions will get you nowhere because you don't benefit from itemizing deductions unless your grand total is higher than the standard deduction which is currently $6100 for a single taxpayer.

April 01 2014 at 9:03 AM Report abuse rate up rate down Reply
1 reply to lou2school's comment
arubadooba

yep, itemized deductions are for med, dental, charities, & mortgage; i only got to use them once in the last 7 years. now, it's std deduction & no bother w/ donations, med bills (i have few...for now) which can't reach the 10% of AGI, or job costs. middle class & unemployed are always in the drain.

April 01 2014 at 8:07 PM Report abuse rate up rate down Reply