Tax Deductions You Do Not Want To Miss!These tax deductions could save you thousands of dollars. Do you qualify?

Tuition and Fees The tuition and fees deduction can reduce the amount of your taxable income up to $4,000. Use this deduction if you paid qualified expenses related to higher education for an eligible student. You can claim the deduction for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.

Education Loan Interest 

Did you know that you can deduct interest you paid on student loans? You can deduct as much as $2,500 of interest paid. The amount of the deduction gradually decreases the higher your income. Taxpayers who earn over $80,000 annually ($160,000 for married couples filing jointly) can’t claim the deduction.

Charitable Donations

The IRS allows consumers to take a deduction for charitable endeavors worth up to 50% of their annual adjusted gross income. When calculating your charitable efforts, don’t forget about donations made from your household property and goods. All donations should have been made by Dec. 31, 2015 to an IRS approved non-profit organization.

Mortgage Interest 

Any interest homeowners are paying on a first or second mortgage, home equity loan or a line of credit may qualify as a deduction. In order to claim the Home Mortgage Interest Deduction, you must itemize your deductions. This deduction typically creates significant tax savings for homeowners, so don’t miss out!

Moving Expenses

If you relocate to start a new job, you may be able to deduct the cost of your move. However, there are strict qualifications: the move must closely relate both in time and place to the start of work at your new location. Be sure to consult a tax pro or the IRS before claiming this deduction to avoid complications.

Betting Losses 

Many are surprised to learn that gambling winnings are taxable income and must be reported on your 1040. However, if itemize you deductions, you can deduct gambling losses up to the amount of your winnings. The rules are a little different for professional gamblers, so be sure to consult your tax pro.

State and Local Taxes

Taxpayers who itemize their deductions have the choice to either deduct their state and local income or sales tax. You can only deduct income OR sales tax, not both. It is recommended to calculate each, income or sales, to determine which deduction would be more beneficial. This deduction is particularly advantageous for taxpayers who live in states without income tax, such as Texas or Florida.

Health Expenses

The IRS only allows you to deduct medical expenses that rise above 10.0% of your Adjusted Gross Income (AGI) if you itemize deductions. Qualified medical deductions are expenses you paid during the tax year for yourself, your spouse or your dependents.

Tax Preparation Fee 

You can usually deduct tax preparation fees in the year you pay them. Thus, on your 2015 return, you can deduct fees paid in 2015 for preparing your 2014 return. These fees include the cost of tax preparation software programs and tax publications.

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Works Consulted: Chang, Ellen. “Top 10 Tax Deductions Consumers Should Not Miss Out On.” TheStreet. TheStreet, Inc., 13 February 2016. Web. <http://www.thestreet.com/story/13458436/1/top-10-tax-deductions-consumers-should-not-miss-out-on.html>