6 Most Overlooked Tax Deductions

Chances are, you're not claiming all the tax deductions you're eligible for! Below you will find 6 tax deductions that can cut your tax bill this year:

1. Healthcare expenses

If you spend more than 7% of your gross income on medical expenses, you can claim this amount as an itemized deduction on your tax return. In addition, those who are self-employed can deduct up to 100% of their healthcare expenses.

2. Charitable donations

Perhaps, you already know that you can claim a charitable deduction for the cash or goods that you donated to charity. But did you know that you could deduct more than just cash?

There are two other charitable donations that you shouldn't overlook — out-of-pocket expenses (such as baking a cake for a charity fundraiser) or donating stock to your favorite non-profits.

3. Paying the babysitter

If you hired a babysitter to look after your kids when you are at work or in school, you can deduct the cost of the babysitter from your next tax bill.

4. Lifetime learning

Whether you're a college student or have long graduated, you can use the Lifetime Learning Credit to lower your tax liability and offset your educational costs by up to $2,000.

5. Unusual business expenses

Whenever you pay for something that can be used to benefit your business, remember to report it on your tax return! That applies to business trips, work uniforms and even body oil (in case you're a bodybuilder who needs one to compete in championships).

6. Social Security for the self-employed

Calling all the self-employed out there — don't forget to deduct half of your Social Security tax on your next return!