Every year, millions of people and businesses overpay their taxes because deductions are overlooked or, in most cases, the taxpayer is simply unaware of them.

In its Business of the Business tip, Tornado Industries, manufacturers of a professional cleaning equipment, the company provides this list of commonly overlooked tax deductions:

    •    State sales taxes. If you live in a state with no income tax, you often can deduct state sales taxes paid. However, if your state does have an income tax, you cannot deduct both.
    •    Out-of-pocket charitable deductions. Keep your charitable receipts. If you give a charity a $20 gift, for instance, it may be deductible.
    •    Moving expenses. If you move more than 50 miles for a job or for your business, moving expenses often can be deducted.
    •    Points. With home sales up, if you buy a house, you can deduct the "points" paid on the loan; if you refinance, you may be able to deduct the points if the proceeds are used to improve your home.
    •    Child care expenses. The credit for child care expenses is often overlooked. This is a tax credit, not a deduction, but is well worth looking into.
    •    Training and education. Because training and education are such a major part of the professional cleaning industry, cleaning pros should be aware that charges for training-and even some of the related costs such as getting to the training center-often are deductible.*

For some deductions, specific conditions may apply. in order for the deduction to be taken. In all cases, ask a tax professional if you qualify for any of these overlooked deductions.


Further, you should understand exactly what a tax deduction is. Just because a deductible item costs $100, for instance, that does not mean the full $100 is deductible off of your income tax.

Instead, the deduction is usually based on your tax bracket. For example, if you are in the 20 percent tax bracket, $20 of that $100 is deductible. Again, always consult with a tax professional to be sure you are taking the correct deduction.