When the deadline to file Massachusetts state taxes and federal taxes begins to loom, many people overlook many deductions that could earn them a higher refund. The most overlooked deductions, according to the Boston Globe article, are child care expenses. In order to qualify both spouses have to work; if they do, they can claim the costs of before- and after-school programs. Overnight or sleepover camps, however, won’t apply. The second most overlooked deduction is care for an elder parent, which can be claimed if the parent qualifies as a dependent. To find out if you’re eligible for a deduction for a child or parent, it is advisable that you contact a massachusetts estate planning lawyer. Additionally, certain medical and dental care expenses may also be deducted if they exceed 7.5 percent of your adjusted gross income.
Another commonly overlooked deduction is the entire amount of your motor vehicle excise taxes, which can be claimed if you itemize your taxes on your federal return. Some interest is even deductible including mortgage interest and investment interest expenses limited to the amount of your investment income. Losses such as casualty and theft losses can also be deducted when they result from such things as insolvency of the bank, fire, and storm damage.
Some of the other commonly overlooked deductions that people miss when they are rushing to finish their taxes are rent paid up to 50%, IRA contributions, energy efficient home improvements, contributions to Health Savings Accounts, alimony, moving expenses, self employed deductions, charitable contributions, and teachers’ classroom expenses.