8 most common missed tax deductions, credits

    5:16 AM, Mar 19, 2013   |    comments
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    LITTLE ROCK, Ark. (KTHV) -- On this Consumer Tuesday, taxpayers may not be aware of tax deductions and end up leaving money on the table. Here are five of the most common missed tax deductions and credits from Yahoo! Finance.

    Dependent exemptions - Exemptions for dependents are 38-hundred dollars per dependent. But individuals often don't take it because they don't realize their relative they've been supporting, or their friend that's been sleeping on the couch may be claimed as a "qualifying relative," which may entitle them to a tax deduction.

    Earned Income Tax Credit - It's for low to middle-income wage earners, but you have to file your taxes to get this tax credit. Not claiming the Earned Income Tax Credit can cost a family with three dependents a credit worth up to nearly 6-thousand dollars.

    Child and Dependent Care Credit - If you work and pay for child care for your dependents under 13-years-old, you may be able to qualify for a deduction of up to $2,100. You can even deduct the cost of summer camp.

    State sales tax deduction - If your state doesn't have a state sales tax, then the option to choose the state sales tax is beneficial. If you purchased some big ticket items in 2012 you may keep more money in your pocket.

    Charitable donations - Don't forget what you donate to charity is tax deductible. Many people have charitable donations deducted from their paycheck, but forget to include it at tax time. Also you can claim your out-of-pocket expenses while traveling to volunteer at local events. You can deduct 14 cents per mile plus parking and tolls for travel directly related to charity work.

    Job-search expenses - You may be able to deduct costs related to job search, such as the cost of resumes, employment agency fees, postage, and even travel expenses, as long as the expenses are directly related to your job search and the positions you sought were in the same line of work as your previous job.

    Moving expenses - Even though job-hunting expenses for your first job are not deductible, you can deduct your moving expenses for your first job. Your job must be at least 50-miles away from your old home. You can even deduct the cost of moving your pet.

    Previous state tax liability - Yahoo! says, "Did you pay previous state tax liabilities in 2012? The amount paid can be added to the state income taxes withheld from your paycheck for an even larger tax deduction."

    (Source: Yahoo! Finance

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