5 Surprising Tax Deductions You May Be Missing Out On

5 Surprising Tax Deductions You May Be Missing Out On

There are some tax breaks that aren't as well known as they should be. Read on for a few deductions that could help you save.

1. Medical expenses

Qualifying expenses don't just include obvious medical costs like doctor's bills and prescription medications. Deductible medical expenses can also include contact lenses and glasses, hearing aids (and their batteries), any medical insurance premiums, pregnancy tests, programs to help you stop smoking, and the cost of transportation to and from medical care.

2. Saver's credit

Retirement Savings Contribution Credit provides a tax credit of as much as $1,000 per year if you save in a retirement account like an IRA or 401(k). There are strict income limitations, but this can be a valuable credit.

3. Home equity loan interest

If you used a home equity line of credit to renovate your kitchen, it could qualify as a deduction.

4. Charitable mileage

If you use your vehicle while contributing to a qualifying charitable cause, you can deduct the mileage you drive at a $0.14-per-mile rate.

5. Gambling losses

You can use gambling losses to offset your winnings, so make sure to save any losing lottery tickets.