In just a few short months, the day you’ve dreaded all year will be here: Tax Day. To prepare for the ominous April deadline, start organizing your finances and look for every single tax deduction, write off and credit you qualify for.
Whether you’re a rookie or veteran tax filer, there’s a chance you’re missing out on some deductions you’ve never heard of. Click through to see 10 little-known tax deductions and credits you’ve probably overlooked, including the ones that make sense — as well as some of the strangest.
1. Job Hunting Expenses
Were you recently on the job hunt? If so, you probably forked over a considerable amount of cash to cover outplacement agency fees or mailing copies of your resume. Little did you know, you can possibly deduct some of those expenses.
According to the IRS, you can deduct certain job search-related expenses. However, there are some rules. For example, you can’t deduct these expenses if you’re looking for a job for the first time.
2. Pet Moving Costs
Believe it or not, if Fido is also moving for your new job, those moving costs could also be tax deductible. For example, if your employment-related move meets IRS requirements, you might be able to deduct your pet’s shipping costs. Who knew there were tax breaks for pet owners?
3. Self-Employment Tax Deduction
If you’re self-employed and earn $400 or more, you must pay self-employment taxes. But, you’re allowed to deduct the “employer-equivalent portion of your self-employment tax in figuring your adjusted gross income,” according to the IRS.
4. The Child and Dependent Care Credit
If you paid for the care of a qualifying child or other dependent so that you and your spouse could work, you might qualify for the child and dependent care credit.
Tax credits are typically better than tax deductions. Whereas deductions reduce your taxable income, credits directly reduce your taxes. So if you didn’t know about the child and dependent care credit, find out if you qualify.
5. The Cost to Stop Smoking
Are you trying to kick your nicotine habit? Your participation in a smoking cessation program can be considered a medical tax deduction. This deduction can also apply to prescription drugs used to ease nicotine withdrawal.
You can read the other half of this list on the Wall Street Journal here: http://bit.ly/2hNhMVW