This tax season, don’t overlook these potential deductions

Tax time is on its way. And according to professional income tax preparers, the road is littered with missed opportunities.

The biggest mistake individual filers make as the April 15 filing deadline nears is not taking all the personal deductions they’re entitled to take, they say. People may not be aware of them, while many miss out by not keeping records of their deductions during the year.

Child care expenses, license tabs and unreimbursed job-related expenses often are missed. Some out-of-pocket medical costs, including health insurance premiums, co-pays and prescription costs, also are missed.

 Besides interest on home mortgages and property taxes on one’s home, some filers don’t realize that the real estate taxes they pay for cabins and bare land also are deductible. The cost of safety deposit boxes can even be claimed, as long as they hold qualifying documents. Some teachers fail to claim the up to $250 allowed for money they spend on their classrooms. Some nurses forget to deduct the cost of their scrubs.

But the biggest misses come in failing to keep track of charitable contributions.

“They don’t keep track of the little checks. “They’re better at the bigger ones that are over $250. But under $250, people are bad about it. And a lot of people miss deductions because of that.”

Contributions of clothes, household items and other in-kind donations of goods to nonprofits such as Goodwill Industries and the Salvation Army often are missed. Just be sure to get a receipt with the estimated value of the donated items.

The number of miles driven to and from medical appointments and for hospital stays often are missed. So is the use of a personal vehicle to do volunteer work.

“If you’re driving for charitable work, keep a log keeping track of those miles.

Missed education credits

Parents with dependent children in college often know they can can get a refundable tax credit for the tuition and related fees they pay.

“What they forget is all the books and all the expenses at colleges, noting that up to $4,000 of those college-related expenses can be claimed to get a maximum of $2,500 in refundable credits.

College students who are self-supporting and pay their own college costs are even less aware of the credit, often failing to list their tuition and fees as well as the cost of books.

Health insurance mandate

But the biggest change in this year’s income tax filing is the result of the Affordable Care Act.

Everyone who files a return must now show proof of having essential health insurance coverage. For those who have plans through their employer, it’s already noted on their W-2s. But those who purchased health coverage through a health insurance marketplace will need their Form 1095-A in order to finish their tax returns.

“If they don’t have health insurance, they will be penalized.

The penalty is $95 or 1 percent of their income, whichever is greater. But the penalty can be avoided for those who qualify for exemptions.

Life events —  such as getting married, getting divorced, having a baby, buying a house, starting a business, retirement or a death in the family — make tax returns more complicated. But tax planners say they can help people navigate those changes as well as help in yearlong tax planning.

“A lot of times we can help with not only what is happening today, but with planning for the future.