Tips For Getting A Great Tax Deduction -- Think Kids, Cars, And More

Give 'til it hurts

Everyone knows that your charitable donations are tax deductible, but according to examiner.com, you may not know just how many other small charitable contributions are also tax deductible. "If you drive anywhere to work for a nonprofit, for example, you can deduct 14 cents per mile. You can also write off any out-of-pocket expenses you occurred while doing charity work," examiner says, adding, "So if you baked some cookies to bring to a bake sale for a qualified nonprofit, you can deduct the ingredients of those cookies. Or if you purchased some office supplies for a fundraiser, that counts as well."

Check out the driveway

Have a beater that's not worth selling? Trying to give back to the people who need it most in the community? Donate a used car to charity. According to turbotax.com, "donating your car to charity can result in significant tax savings if you include it in your charitable contribution deduction."

To execute the deduction, find out how much the charity sold the car for, and there's your deduction. The IRS allows you to claim a tax deduction for the full sale price. If your car sells for less than $500, you can claim the fair market value of the car, up to $500.

If the charity donates the car or keeps it, you can determine the car's fair market value through a resource like www.kbb.com and use that as the basis for your deduction.

Look to the kids

Sure, they cost a lot of money (and aggravation, but that's for another story), but offspring can come in handy at tax time. If you're a parent, make sure you check out the child tax credit, which allows a tax deduction of $1,000 for each qualifying child. Also available is an adoption credit for families that have grown through adoption. The tax credit applies to court costs, fees and travel expenses. It's worth checking out: In 2014, the maximum credit was $13,190.

And, of course, don't forget about day care expenses. The Child and Dependent Care Credit lets parents deduct expenses related to allowing them to work.  If you have one child receiving childcare, you can use up to $3,000 worth of expenses to figure your credit. Families with more than one qualifying child can calculate their credit based on up to $6,000 in expenses.

Retirement and education expenses

If you're in college, saving for a child's college education, paying a student loan or planning for retirement -- and let's face it, just about everybody falls into one of these categories -- make sure you're getting all the tax deductions you deserve.

If you're saving for a future student, 529 plans, usually state or school-sponsored, have no income limit and let parents and students deduct qualifying college expenses including  tuition, books, fees and supplies. Check out the Michigan Education Savings Plan here.

If you're a graduate, interest paid on student loans are tax deductible.

For adults in the job market trying to plan a secure future, a 401K account lets you invest without Uncle Sam taking a cut. A Roth IRA is an individual retirement account that allows you to set aside after-tax income up to a specified amount each year. Earnings on the account and withdrawals after age 59½ are tax-free. Start now to jump start the future.