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Fun fact: these everyday expenses can become tax deductions if you know what you re doing. There are a lot of things you can t deduct on your federal income tax, like your vacation to Cancun or your new sports car. However, the Internal Revenue Service (IRS) does allow plenty of other deductions, which can result in a lower tax bill or perhaps even a larger return. State Sales Tax A lot of folks don t realize that if you re paying state sales tax or state income tax you can write it off of your federal income tax. It does require you to itemize the deduction rather than taking a standard deduction, but programs such as TurboTax can help you determine which is best for you. Even for those that live in an income-tax-free state, there are ways to claim the sales tax deduction. The IRS even has a Sales Tax Deduction Calculator to help you out.

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