Tallying up those last-minute deductions? Good. But know that not every deduction is obvious. There are a bunch of esoteric deductions that are perfectly legit – but often overlooked.
Some of the newer deductions you should not miss:
- Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, even if you take the standard deduction, you can deduct $300 in charitable cash contributions.
- Calling all teachers! If you're an eligible educator, you can deduct up to $250 for qualified expenses and supplies. Under the latest coronavirus relief package, qualified expenses also include the amounts paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of coronavirus.
- The saver's credit is something that people often miss, says Greene-Lewis, who notes that the IRS says one out of five people frequently omit it. The saver's credit can be up to $1,000 if you're single and $2,000 if you are married filing jointly. You basically get it just for contributing to your retirement, if you meet the income requirements.
- In addition, if you sent your kids to summer day camp so you could work, you may be able to deduct the cost of that camp. Or if you have bad debt – albeit business or a personal – that you can’t collect, it could deductible. And if you’re self-employed, half the amount you paid into social security and Medicare also is deductible.
- And then there are some fun ones. If you're a pet influencer – yes, pet influencer – on social media, your pet expenses may be deductible. Note that if you are a pet parent, you can not deduct your pet’s expenses. (Good thing that puppy is cute.)
TurboTax and Lisa Greene-Lewis partnered with TheStreet and will have advice through the entire tax season. Here are a few more videos to watch: how to determine your filing status and last minute-tax tips.