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While there are many things that you can write off on your taxes that often go overlooked, here are some that you, as a twenty-something recent (or soon-to-be) college graduate, probably have but I bet don’t claim:

1. Cellular telephones
2. Contact lenses, eye glasses, and hearing devices
3. Contraceptives (if bought with a prescription).
4. Costs associated with looking for a new job in your present occupation, including fees for resume preparation and employment of outplacement agencies.
5. Depreciation of home computers.
6. Foreign taxes paid (helpful if you’ve studied abroad this year, or went away on Spring Break).
7. College tuition (You won’t find this one on the forms, but you may qualify to deduct up to $4,000 you paid in college tuition for yourself, your spouse or a dependent).
8. Student loan interest paid by mom and dad (If mom and dad pay back your loans, the IRS treats it as though they gave the money to you, their child, who then paid the debt. So, a child who’s not claimed as a dependent can qualify to deduct up to $2,500 of student loan interest paid by mom and dad).
9. Moving expense to take first job (Here’s an interesting dichotomy: Job-hunting expenses incurred while looking for your first job are not deductible; but moving expenses to get to that first job are. And you get this write-off even if you don’t itemize. If you moved more than 50 miles, you can deduct the cost of getting yourself and your household goods to the new area, including 18 cents a mile – and parking fees and tolls – for driving your own car).
10. Collect overpaid Social Security tax if you worked for more than one employer (If you worked for more than one employer – work study while at school, and at a summer camp over vacation, for instance – each took Social Security taxes out of your paycheck based on what they paid you. You may claim a refund of the excess on your return).

And, if you’re not quite ready for the Real World and plan to continue your higher education, H&R Block reminds you,

You could be eligible for tax breaks if you return to school… You may qualify for the Hope credit, the lifetime learning credit, a deduction on your tax return if you itemize, or an exclusion for Series EE or I bond interest. The maximum Hope credit tax break is $1,650 per student ($3,300 for Gulf Opportunity Zone students). The maximum lifetime learning credit is $2,000 per return (up to 20 percent of the first $10,000 of expenses). You may also contribute up to $2,000 per year to a Coverdell Savings Account for your children, but that is a savings plan, not a tax credit or deduction. Tax breaks can make going back to school more affordable, so check with your tax professional and choose the option that is best for you.

(image by curious_spider)

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