This document discusses 5 overlooked tax benefits: 1. Students can deduct interest paid on their student loans even if their parents made the payments. 2. Taxpayers can elect to deduct state and local sales taxes instead of income taxes, which may provide a bigger deduction. 3. Job seekers can deduct expenses like agency fees and travel costs related to searching for employment within their field. 4. Homeowners can deduct part of their home office expenses if they use it for their business. 5. Individuals can give up to $14,000 per person each year gift tax-free, or $28,000 if combining gifts with a spouse.

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STUDENT LOAN INTEREST YOUR PARENTS PAID
If your parents repaid your student loan, you can still take the deduction. The
IRS will allow you to treat the student loan payments as if your parents had
given you the money and you repaid the loan yourself. If you’re not a dependent,
you can qualify for a deduction on student loan interest of up to $2,500.
ELECTION TO DEDUCT STATE AND LOCAL SALES TAXES
If you itemize deductions, you can elect to deduct state and local sales tax
instead of state income taxes. This is valuable if you live in a state without
income tax, but can also provide a bigger deduction in other states if you
made big purchases subject to sales tax (like a car, a boat or a home,
or all three).
JOB SEARCH EXPENSES
If you itemize deductions, you can deduct job search expenses like
employment agency fees, travel, and preparation and mailing of portfolios or
résumés. Your search must be within your current occupation, and you can
deduct these expenses only to the extent your total miscellaneous itemized
deductions exceed 2% of your adjusted gross income.
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HOME OFFICE DEDUCTION
You can deduct some of the cost of your home if you use your home as
your principal place of business, you meet clients and customers there in
the normal course of business, or your home office is a separate structure,
unattached to your home.
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ANNUAL GIFT TAX EXCLUSION
You can give up to $14,000 to as many people as you want every year free
of gift or estate tax. If you combine gifts with a spouse, that’s up to $28,000
per beneficiary per year.
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Read the 2014 Year-end tax guide
for more on tax benefits and deductions.
5 OF THE MOST
overlooked tax benefits
University