For most Americans today, the amount of their tax refunds is much lower than what it could be. The United States government gives us a tax break on many situations and circumstances, but the majority of Americans fail to list these as deductions on their tax returns. With some important tax tips and basic knowledge, you can gain control of your tax situation and put more of your dollars back into your pocket.

Hybrid Cars: If you own a car that is run primarily on electric, it is well known that you can utilize a deduction known as the electric vehicle credit. Hybrid cars, do not qualify for the electric vehicle credit since they are not run primarily on electric motors. However, hybrid cars may qualify for the clean-fuel deduction. Generally, the clean-fuel deduction is limited to the cost of the electric components used in the vehicle. Also, to claim this deduction on your tax return, you must be the original owner of the vehicle and it must be used for your own business or personal use.

IRA Contributions: Making regular contributions to an IRA not only lowers your income and creates a tax advantage in that respect, you may also qualify for an IRA contribution credit. To be eligible, your adjusted gross income must be $50,000 or less if you are married and filing a joint return, $37,500 or less if you are head of household, or $25,000 or less for any other filing status. Also, you must be 18 years old or older, cannot be claimed as a dependent of any other taxpayer and cannot be a full-time student. The credit varies from 10 to 15 percent of your contributions, anywhere up to $2,000.

Volunteer Work: Make sure to keep track of your volunteer mileage. In participating in some volunteer activities, you can deduct 14 cents per mile as a charitable contribution on your tax return. Don't forget to include these deductions in addition to other contributions you've made throughout the year, such as monetary contributions to a church, charity, etc.

Medical Expenses: If you undertake a weight-loss program to control obesity, you can deduct the cost and expense of the program. The cost of any foods that are a substitute for the foods you normally eat are generally not deductible, however, you can deduct the cost of the foods if those foods help to treat or cure an illness, the foods do not satisfy your nutritional needs or if the need for those foods is verified by a physician or professional.


Employment Expenses: The United States government encourages people to find and keep employment. As such, you may deduct the cost and expense of job application, such as resume production, paper, supplies, printing, resume mailing, and even mileage expenses during travel for job interviews. Once you are employed, you may deduct the cost of any work uniforms, work shoes and union dues, since such costs are considered business expenses on your part.

Letting the IRS share your losses
Most taxpayers think they can deduct casualty losses only if they suffer catastrophic damages.

But you don't have to live through a fire, flood, hurricane, tornado or earthquake to file a casualty deduction. Losses from theft and vandalism are eligible losses, as are any damages from an automobile accident as long as it wasn't the result of driver negligence.

The IRS also has deemed costs for programs to help you kick the smoking habit are medically deductible, as are weight-loss programs undertaken at a physician's direction to treat an existing disease such as heart disease.
Special medical needs: The medical deductions section of your tax form is also where you account for the cost of a wheelchair, crutches and equipment that enables a deaf person to use the telephone or that provides television closed-captioning.

In general, make tax time a year-round concern, instead of a one-time worry. Proper planning throughout the year will result in a more efficient filing, a better knowledge of your available tax deductions and huge savings at tax time. Take note to watch out for and document all expenses that can be used as deductions and make plans for investments and donations with the ultimate goal of tax savings in mind.


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