I Am Empowered - I am the National Urban League

Anna Cuevas is the National Urban League's new Consumer Advocate, as part of our 2015 Financial Empowerment series. Learn more about Anna here.

It’s April! Have you done your taxes yet? Income taxes are often a dreaded process, especially when taxpayers think they're not entitled to a refund. Unfortunately, many taxpayers aren't aware that they qualify for and miss out on many deductions. Here are some possible deductions that you may not know about:

1. Health insurance premiums. You might know that medical expenses are deductible, depending on the amount, but many people don't realize that health insurance premiums are included in that deduction. With the new healthcare laws, more people will qualify for this deduction. In fact, the majority of self-employed individuals qualify. It's a great way to offset the costs of having the security of affordable healthcare.
    
2. Home improvements and appliances. Did you replace a refrigerator or install a new furnace or air conditioning system? Did you get new siding, windows, or a roof? These improvements offer energy efficiency, and the government rewards taxpayers for these investments by offering tax deductions for such upgrades. Electrical upgrades, such as solar power, also offer significant tax savings.

   

3. Losses are tax deductible. If your home was damaged due to flooding, tornadoes, wind, earthquakes or other disasters, the loss can be deducted on your income taxes. If you have insurance that covers those losses, you can only deduct the portion that wasn't covered. Don't forget theft—if you've been the victim of a crime and someone has stolen items from your home, those losses may also be tax deductible.
    
4. Refinancing a mortgage. If you refinanced your mortgage, take advantage of the tax savings. Any points you paid this year, and sometimes in previous years, can be tax deductible.
    
5. Sales tax. If you live in a state that requires you pay state income taxes, those taxes can be deductible. You might be able to deduct a set sum, based on your income, but may benefit even more if you've made some larger purchases during the year and can itemize those purchases.
    
6. Childcare expenses. You may be able to deduct the amount you pay for licensed daycare for your children while you are at work. Don't forget, too, that some employers offer flex plans that set aside expenses for childcare as tax-free income.
    
7. Deductions when you care for your parent(s). If you are charged with the responsibility of caring for an elderly or disabled parent, you can deduct a percentage of the expenses you pay. If the parent is living with you or you pay someone else to care for your parent while you're at work, you may also qualify for a parent or elderly care deduction.
    
8. Tax preparation. Whether you pay an attorney, an accountant, a tax professional, or opt to pay for a software program to assist you in tax preparation, the fees are deductible expenses that you shouldn't overlook.
    
9. Last, but not least, don't forget the earned-income tax credit. Most low to middle-income taxpayers do not itemize deductions and elect to take a standard deduction. By overlooking the earned-income tax credit, they could lose out on significant tax savings. Based on one's adjusted gross income, this deduction could result in a refund for heads of household who pay little or no taxes. The Internal Revenue Service suggests that as many as one-fourth of all taxpayers who qualify fail to take advantage of the tax savings that the earned-income tax credit offers.

These are just nine ways that taxpayers can maximize their tax refund. Seek the advice of a qualified tax professional before you file your 2014 income taxes to ensure you access all of the deductions you are entitled to, and you'll receive the maximum refund.