Many Americans forget about obscure tax breaks

Most taxpayers are aware that a large number of tax benefits exist in a broad range of categories, from retirement and education to travel and job search expenses. But there are some tax breaks that often go overlooked because millions of Americans are simply unaware of them.

For example, bingo players and other gamblers may deduct their losses from last year up to the amount they won, according to the Christian Science Monitor. However, in order to claim this deduction, individuals must keep a thorough record of their gambling events.

Individuals who have suffered hair losses due to a medical condition may also be permitted to deduct the costs of a wig, the news source adds. However, some conditions apply. For example, the costs of a wig are deductible, but expenses associated with hair transplants, regardless of whether the hair loss is medical-related, cannot be claimed. The government currently considers hair transplants a form of cosmetic surgery.

Due to the fact that so many tax credits and deductions exist, it’s important for consumers to be extremely honest and open with their tax preparer about their financial situation. Individuals can also learn more about these benefits by educating themselves through tax preparation websites, tutorials and web-based materials.

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Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs. 
Posted To: Tax Ranger's Blog By: Tax Ranger On: Friday, April 15, 2011
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