Summer child care costs for day-camps can be deductible. However, you cannot deduct expenses for sleep-away camps. Care expenses for adult dependents may also be deductible.
An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit and the lifetime learning credit.
Don’t overlook these important credits.
Expenses incurred while doing charitable work, such as mileage, meals, and uniform cleaning fees may be deductible.
Taxpayer who itemize and incur costs while job hunting that exceeds two percent of the taxpayer’s adjusted gross income can deduct those expenses.
Reservists and members of the National Guard who travel more than 100 miles and stay overnight for training can deduct related expenses.
If a homeowner refinances and uses proceeds to improve their principal residence, they may be able to deduct the points paid on the loan for the year of purchase.
Travel expenses to and from treatments, including mileage and meals, may be deducted if the taxpayer’s medical expenses reach the 7.5 percent of adjusted gross income threshold.
Moderate and low-income taxpayers may be able to save as much as $1,000 on contributions to an eligible retirement account.
There are many education expenses that can be deducted – tuition and fees, the Lifetime Learning Credit, and the Opportunity Tax Credit. If a taxpayer is pursuing any kind of education, it’s worth looking into.
There are still credits worth up to $500 for energy-efficient home improvements available for 2011 returns.