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Taxes can be extremely overwhelming. Not only are they expensive but they can be confusing as well. There are a lot of discussions going on around about how people should be fair in regards to paying their taxes and duties. Areas that are tax deductible are often taken advantage of people which have now become the subjects for debate. Regardless of what your stand is though, most people agree that the tax code needs some sort of revision. However, while respective people are still working on reviewing the tax code, it is important to learn about the existing tax breaks including some of the most overlooked tax deductions which you can benefit from.

1. Catch up retirement deductions- These days, the IRA contribution limit for the younger generations is at $5000. What most people do not know is, if you are 50 years old or older, you can get up to $6000. The reason for this deduction, as implied by the name, is to let older people catch up especially if they are behind and have absolutely no money saved for their retirement. As you may know, polls have estimated that half of Americans have no retirement savings, thus, the IRA has come up with this tax break to let them catch up.

2. Job hunting costs- A lot of people overlook this tax deduction simply because of not being aware of its existence. If you ever had to pay certain fees to an employment agency, organization or any establishment during the course of your job search, spent your own money on business trips, allotted some budget for your resumes, work presentations and other work-related documents, you will be pleased to find out that these are actually deductible expenses. Just make sure that you keep the receipts and that they are job-related so that they can be added to your itemized deductions. Furthermore, keep in mind, that this tax break is not only applicable to people who are unemployed. If you have a current job but are also looking for other employment opportunities, you can also be qualified to benefit from this. As mentioned earlier, just ensure that the costs are totally job-related to avoid having complications in the future. Be totally honest when listing down your itemized deductions. Do not ever include personal and leisurely trips and expenses.

3. Interest on student loans paid by someone else- Loans that are under your name regardless of who is paying for them are qualified for deductions. If your parents are paying for your loans, as long as the loans are under your name, then you are the one entitled for the tax return. However, your parents can claim the return if you are listed as their dependent or if the loans were made under their name.

4. Glasses and contacts- These two are some of the most overlooked tax deductions. These actually fall under the same category as wheelchairs or hearing aids. People oftentimes choose to ignore adding these in their itemized deductions because they do not actually seem like important medical expenses. The good news is the IRS considers these as deductibles. You can benefit from this more especially if you choose to wear top of the line or designer eyewear.

5. Out of pocket charity expenses- This obviously can be added in the list of itemized deductions, but what most people usually only add are big, cash donations. Do not forget that little donations such as school materials for fundraisers, food ingredients for the local soup kitchen, reading materials for the children’s hospital are deductibles as well. In addition, if you are volunteering to drive for volunteers or children from orphanages or hospitals, you can avail of a tax deduction at a rate of 14 cents per mile as well. On the other hand, commuting to and from your charity office does not count.

These are just some of the most overlooked tax deductions. To learn more about other itemized deductions that you can qualify for, you might need to check credit report and go over it with a qualified tax adviser. So the next time that you file for your tax returns, make sure that you know all the itemized deductions that you can consider to make tax breaks work in your favor.