3 Little Known Federal Tax Deductions

Federal tax deductions are expenses that you can deduct from your gross income when you fill out your federal tax return, allowing you to pay fewer taxes. You can choose between a standard deduction and itemized deductions. While the standard deduction is determined based on your filing status, itemized deductions are based on a wide variety of expenses that you may or may not be eligible for. There are hundreds of deducts you can choose from. Some itemized deductions are fairly well-known, but there a number of deductions that many people are unaware of. So long as you keep your records and fill out the tax returns correctly and on time, you will be able to get them.

Work Uniform Deduction

If the combined cost of your work uniform, union dues and other eligible work-related expenses exceed 2% of your adjusted gross income you may deduct the overage.

Gambling Losses Deduction

Under the current tax law, you must report your gambling winnings. The upside to that is that you can also deduct losses that are equal to or less than the sum of your winnings for that tax year.

Moving Expenses Deduction

If you have to move for job-related reasons to a place at least 50 miles from your previous job, you can deduct the cost of moving expenses.