10 Commonly Missed Tax Deductions That Could Save You Thousands

Investors who automatically reinvest their mutual fund dividends often overlook the opportunity to use this purchase of new shares to increase their cost basis. This doesn't really count as a deduction today, but by increasing your cost basis, you'll decrease the amount of capital gains tax you pay in the future.

Most people already know they can deduct the value of goods donated to a charitable organization, but they often fail to include mileage they rack up when performing charity or volunteer work. This is just one more way you can take advantage of your good deeds!
 

In most cases, the points you pay upfront to refinance a mortgage are written off little by little over the life of your new loan. But if you refinance your principal residence a second time before all the points are written off on the first refinance, you can usually deduct the entire remaining balance in that year.
 

If you owed 2009 state income taxes in April of 2010, you should deduct them on your 2010 federal tax return to be filed this year. And don't forget any other quarterly tax payments you made to your state in 2010.
 

With our increasingly mobile job force, many people find themselves taking new jobs far from their old ones. If you made a job-related move in 2010, make sure you check if you met the distance and time test set by the IRS. In most cases, if you moved within one year of reporting to a new job and the distance between your new home and new job is not farther than the distance between your old home and your new job, you can deduct the un-reimbursed cost of moving your household items and your travel expenses (sans meals). To see if you qualify, click here to use the Tax Trails feature on the IRS website.

You can claim the child tax credit and get a $500 tax credit per child on your tax return, as long as your children are under age 17 at the end of the tax year. Incredibly, many parents miss this useful perk. And if you are a working parent or are looking for work, you may qualify for additional tax deductions meant to offset the cost of childcare for children under the age of 13.

This is a significant refundable credit for low-to-moderate income earners. When the EITC exceeds the amount of taxes owed, it results in a refund. And here's another bonus: If you think you qualify for the EITC, you may also qualify to receive free help preparing your tax return. Check here to see if you qualify.

If you're unemployed and looking for work in your current field, you can deduct the expenses of, say, a career search firm or travel costs that are associated with your hunt for employment. Unfortunately, if you're looking for a totally new career or job searching for the first time, job search expenses are not deductible.

If you live in an area that was designated a federal disaster area and your insurance company didn't cover your entire loss, you can deduct the value of the lost items. Make sure you take pictures and keep good records for the items that were destroyed. And be ready to submit proof of the original value of the property.