Overlooked Tax Deductions: Summer Camp, Student Loans, Moving Expenses, and State Taxes

Child and Dependent Care Expenses

• 💡 Summer day camp costs for children under 13 can be deducted, up to 35% of $3,000, provided parents are working.
• 🧩 This deduction also applies to before and after-school care and babysitter costs during the summer.
• ⚠️ The deduction does not include overnight camp.

Student Loan Interest Deduction

• 🎯 Individuals can deduct the interest paid on student loans, up to $2,500 annually.
• 📚 This deduction applies only to the interest, not the loan balance itself.

Military Moving Expense Deduction

• ✈️ Members of the military are an exception to the general rule and can still deduct moving expenses.
• 📍 The move must be related to starting a new job and typically requires a minimum distance of 50 miles.

State and Local Taxes (SALT) Deduction

• 💰 Taxpayers can deduct some of their state and local taxes, including property and income taxes.
• 📈 This deduction is most beneficial for those in high-tax states.
• ⚠️ Currently, there is a cap of $10,000 on this deduction, a measure implemented by the Tax Cuts and Jobs Act of 2017.
• 🗣️ There is ongoing discussion about potentially doubling or eliminating the SALT cap.