Don’t Miss These Money-Saving Tax Breaks

Tax Breaks

Don’t Miss These Money-Saving Tax Breaks

Take these deductions even if you don't itemize your return.

One of the biggest mistakes taxpayers make is thinking that this year’s tax return is probably the same as last year’s. But, even when Congress doesn’t change the law, remember that the rules that affect you can change dramatically as your life changes.

See Also: SLIDE SHOW: 15 Believe-It-or-Not Tax Deductions

Here are a couple of tax breaks that can come into play at the beginning and end of your career.

Deduct job-related moving expenses

Let’s say you graduated from college last spring and moved to take your first job. Congratulations – and don’t forget to write off the cost of that move. As long as the job is at least 50 miles away from your college home, you can deduct the cost of the move, including the cost of shipping stuff that wouldn’t fit in your car. And, speaking of your car, deduct 23.5 cents a mile for a 2014 job-related move.

Used to be, you had to itemize to get this break. But no more. Now you claim these expenses on the face of the Form 1040, so you get the benefit even if you claim the standard deduction.


Medicare premium deductions for self-employed

And, let’s say that after you “retire,” you decide to start your own business – maybe as a consultant. As a self-employed person, you can deduct the premiums you pay for Medicare including the fee that is automatically deducted from your Social Security benefits. Usually, those premiums are deductible only by those who itemize and then only to the extent that all unreimbursed medical expenses exceed 7.5% of adjusted gross income. But for the self-employed, 100% of this expense can be written off on the face of the 1040 without regard to any income threshold; and, again, even if you claim the standard deduction.

Throughout your life as a taxpayer, the tax landscape will always be shifting. Stay alert so you don’t overpay your tax. Take a look at more commonly overlooked tax breaks.