What Are the Most Commonly Overlooked Deductions on Your Taxes?

Deductions are important tools to help you save money on your taxes.  There are many common deductions that can reduce your tax liability.  However, there are also some commonly overlooked deductions that can help you save more.  What are these deductions and how can they help you with your taxes?

One commonly missed deduction on your taxes is state sales tax.  You can deduct this amount through 2011.  However, you cannot deduct state sales tax if you choose to deduct state and local income tax.

Another deduction on your taxes that can help you save money is on reinvested dividends.  For example, if an investment earns money, and you reinvest that money once more, rather than spending it, you can deduct it from your taxes.

You can also deduct any charitable donations that you made out of pocket.  These deductions can save you a considerable amount of money on your taxes.  If you are paying interest on student loans, you can deduct this from your taxes, as well.  A similar deduction is to take the interest off your mortgage payment as a deduction.

If you are in the National Guard or another reserve group, you can deduct your travel expenses from your taxes.  Business owners (and self-employed people) can also deduct the cost of health insurance for themselves and their families from their taxes.

Finally, if you have refinanced your home, you can deduct the points from the refinancing from your taxes to save even more money.  There are numerous other commonly overlooked deductions, but you should speak with a professional tax preparer to learn if they apply to you.