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Little-known tax deductions that can save you big money

Filing taxes is a chore most of us dread, but there are some little known write-offs that can help you save money this tax season.

Filing taxes is a chore most of us dread, but there are some little known write-offs that can help you save money this tax season.

“All that little stuff adds up,” said Martha Wells, an accountant with Wells Accounting Services in Davenport.

Wells has been doing taxes for more than 30 years, and she says every year there are deductions left on the table.

Here's what you can write off

Charitable donations and fundraiser purchases

For example, many people know you can write off donations to charity, like the clothes you take to Goodwill. But the cookie dough and candy bars you buy for a school fundraiser can be write-offs, too.

“You can’t take the whole thing – you receive a product. You have received the wrapping paper or the magazine sales, but usually, like on the magazine sales for the schools, they say ‘10 percent fundraiser’ for the school,” said Wells.

So, if you buy $100 worth of magazines, that’s also a $10 donation.

Driving for volunteer work or appointments

If you drive a lot, for either volunteer work or doctor’s appointments, Wells suggests logging those miles, as well. In 2015, the IRS’ standard mileage rate was 14 cents per mile driven in service of charitable organizations. Just one trip from Moline to Iowa City and back is a roughly $17 write-off.

“For most people, they have to have some type of catastrophic expense to be able to deduct the mileage. However, if you’re going up to Iowa City frequently, you’re going to the Mayo Clinic, you’re going just locally to your local doctor and making a lot of trips, keep track of your mileage,” said Wells.

Education expenses

If your child is headed off to college, don’t forget about the education credit.

“I’m sure you paid for school – how did you pay? We paid with loans. You can take the credit, even though you paid with a loan. You’re obligated to pay that loan back,” said Wells.

Job searching and moving

Finally, people who spent the past year looking for work can deduct job search costs, like having a resume prepared. Once you’ve landed a new job, moving costs can be deducted, too.

“When you move from one location to another, it has to be more than 50 miles, you can deduct the cost of the U-Haul, the boxes, the tape,” said Wells.

Wells says the key is documenting each deduction. She suggests using your smartphone to take a picture of receipts throughout the year, and downloading an app to track mileage.

For more tips to help maximize your tax refund, click here.

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