ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Get More of Your Money Back: Overlooked Tax Deductions, Bigger Returns

Updated on August 23, 2019

Overlooked Tax Deductions Cost You Money

Overlooked tax deductions can cost you hundreds or even thousands of dollars on your tax refund.
Overlooked tax deductions can cost you hundreds or even thousands of dollars on your tax refund.

Are You Paying Too Much on Your Tax Return?

More money could be coming your way in the form of a larger tax refund if you don't pass up some of the most overlooked tax deductions. It's easy to fill out the 1040EZ and just forget about all the hassle of filling out that long form. But if you do that, you're likely missing out on some pretty serious cash back on your tax refund this year.

Here's a serious number for you - about 48 million Americans itemize on the 1040 tax form and claim more than $1,000,000,000,000 - that's one trillion dollars - every year. There is a lot of room for mistakes with that many people filing and itemizing deductions. Some of the more serious mistakes in overlooking deductions can cost you hundreds, even thousands of dollars. Here are some of the most commonly overlooked tax deductions.

First-time Homebuyer Credit - $8,000

That's right - $8,000. Do not miss out on this tax credit. If you are a first-time home buyer who closed a home sale by April 30, 2010, or got a contract to buy a home by that same date and closed on the contract by September 30, 2010, you qualify for this huge tax credit. Those who have owned a home for 5 of the 8 years before buying a new home qualify for a big $6,500 tax credit. There are a lot of limitations and rules for this overlooked tax deduction so be sure and check with your tax professional for more details.

Interest Paid by Parents on Student Loans - $2,500

As a rule, interest on student loans is deductible only if you are legally bound to repay this debt. However, the IRS considers money paid by parents toward repayment of a student loan to be money given to the child, who then takes that money and puts it into repaying the loan. If you are a child who is not claimed as a dependent on your parents tax return, you may qualify to deduct as much as $2500 of the loan interest that was paid by your parents. The parents do not get this deduction because they are not liable for the student loan payments.

Costs of Looking for a Job are Deductible

This is a big one this year because so many people have looked for a job in the past year. Just to be clear, we're talking about expenses incurred looking for another job - not your first job. First, keep track of all your job-hunting expenses including food, hotels, transportation, cab fares, air fares, employment agency fees, printing business cards, resumes, even postage and advertising. All of these are overlooked tax deductions that can be costing you big.

Moving expenses are also deductible for your first job or your next job. The best thing about this tax deduction is you don't even have to itemize. Your new job has to be more than 50 miles from your home. This most overlooked tax deduction includes expenses and costs to get you and your household to another location. It even allows 16.5 cents per mile for driving your own car along with the move. Tolls and parking fees along the way are also deductible.

Don't Miss Out on the Childcare Credit

Sometimes this one gets overlooked, especially if your employer is paying or reimbursing you for your childcare costs. If you have two or more kids in childcare, up to $6,000 can qualify for this tax credit. Tax credits are even better than deductions because they will reduce your overall tax bill by crediting you for every dollar you spend. This one overlooked tax deduction can add hundreds to your tax refund.

Be sure and contact your CPA or professional tax preparer for the specific details regarding deductions. There are many other overlooked tax deductions like charitable contributions, state sales tax, reinvested dividends, health insurance deductions, estate taxes, jury duty, energy saving credits, and more.

Overlooked Tax Deductions: How to Get Your Refund Check Faster

How much do you know about overlooked tax deductions?

What is the most common mistake made on IRS tax return forms every year?

See results

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)