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What are overlooked tax deductions of 2013?

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Quick Answer

Some overlooked tax deductions of 2013 were child care credits, dependent care credits, dependent exemptions, state sales tax deductions, moving expenses, job search expenses, charitable donations and previous state tax liabilities. Dependent exemptions add up to $3,800 per dependent, but many people don't take them because they don't realize the friend or family member they are helping qualifies them for this exemption, according to U.S. News & World Report.

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Full Answer

Another commonly overlooked tax deduction is student loan interest that has been paid by a student's parents. As a general rule, taxes can only be exempt for a person who is legally responsible for paying the debt, but the IRS treats student loan transactions as the parents giving the money to the child who then pays the debt. Therefore, they are exempt, notes Kiplinger.

National Guard or military reserve traveling expenses are another tax deduction that is often overlooked. The distance traveled must be 100 miles or more from home, and if a person qualifies, lodging and half of meal costs can be deducted. There is also a driving allowance available.

Solar hot water heaters, wind turbines and geothermal heat pumps added to the home can bring a 30 percent of cost credit to a taxpayer as well.

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