4 Tax Breaks You’ve Never Heard Of

Experts believe that if only people paid more attention to their tax planning, they could end up saving more money than usual. The secret to this is to find hidden deductions that are scattered all over the U.S Tax Code despite its apparent complexities.

So, with the 200 hidden tax breaks that are available, here are 4 tax breaks that you’ve never heard of:

#1:Paying for your child’s tuition or medical care

Parents or grandparents can pass up to $14,000 a year (or up to $5.12 million in their lifetime) without paying inheritance tax. However, experts believe that well-off parents can actually get around to giving much more than the aforementioned limits but will have to pay it directly to the medical or educational provider.

#2: Private Mortgage Insurance

The recent fiscal cliff deal that was made now allows users to deduct their premiums for private mortgage insurance, and which can be anywhere between $50 to $220 for a $250,000 mortgage loan. But what most people don’t know is that the deduction extends to not only the interest but also for mortgage insurance as well.

#3:Moving away for a job

If you new job, which will be at least 39 weeks of work, is at least 50 miles away from where you are, you qualify for a tax deduction. However, what is not known is that self-employed individuals as well as recent graduates can benefit from too.

#4: Alternative Medical Treatments

The IRS, in 1955, made an allowance for deductible medical care for practitioners of Christian Science and it has been extended to other forms of alternative medical treatments. Some of these treatments include herbal supplements, vitamins and acupuncture as long as they are provided by medical practitioner.