Life's Bigger Expenses and Headaches

Some of life's bigger expenses and headaches can help lower your taxes. This list are the most common and overlooked deductions.

Here's a list of common expenses can will help qualify you for a deduction or tax credit.

Mortgage Interest - you are allowed your main residence and a second home only.

Mortgage Insurance Premiums - commonly known as PMI.

Alimony - the payer gets a deduction and the recipient has to claim it on their return.

Child Care - payments are limited based on income.

Credits for Higher Education - you cannot claim unless it is for yourself or a dependent; it too is also limited based on your income.

Individual Retirement Accounts - if you withdraw money from your retirement account before you reach age 59 1/2 you will have a 10% penalty on the total amount withdrawn.

Student Loan Interest - you can only claim this interest on your return if the interest was paid for a loan for yourself or a dependent that you are claiming on your return.

Moving and Relocation Expenses - you must move a minimum of 50 miles from your old home to your new location.

Classroom Expenses for Teachers - this credit for Teachers is limited to $250 regardless of how many receipts that you have for purchases of classroom supplies.

Earned Income Credit - it is extremely important that you check all of the eligibility requirements before you claim this on your return.