For the most part, you are probably fairly familiar with many of the tax breaks you should be taking at year end. Many of them are relatively obvious. You probably know that it’s a good idea to evaluate your investment losses to see if they can be used to offset your capital gains and some of your other income. You probably also know that now is the time to ramp up charitable donations, and increase what you contribute to retirement accounts and to your Health Savings Account. These moves can help reduce your tax liability. But these well-known tax deductions aren’t your only chances to reduce what you owe. Here are a few overlooked tax deductions that you should consider:

Job Hunt Expenses

If you are looking for a new job (not your first job) in your career field, you can deduct some of your job hunt expenses. Make sure you know whether or not you qualify, and then keep track of travel expenses, resume services, employment agency fees and other costs related to your job hunt. These are actually tax deductible, and can help you save money on your taxes.

Charity Mileage

Many people know that they can deduct their charitable contributions. You might even know that you can deduct the value of goods donated (make sure you get a receipt for all charitable contributions). However, some people don’t realize they can deduct the mileage traveled for charity work. The rate isn’t as high as the deduction for business-related travel, but a deduction is still a deduction. As always, keep good records, and only count the miles you travel on behalf of the charity.

Fees for Professional Services

Do you pay a fee for an investment or financial adviser? Do you have someone else prepare your business taxes? These are costs that might be tax-deductible. Make sure you find out what is required, but when you take advantage of these types of professional services, you might be able to get a tax deduction, reducing the impact paying these fees has on your wealth.

State Sales Tax

Most people are aware that they can deduct state income tax payments. But what happens if you live in a state that doesn’t collect income tax? The IRS lets you choose between deducting state and local income tax OR deducting state and local sales tax. For those who live in states that don’t tax your income, you can get a break by claiming a deduction for the sales tax.

Credit: Child Care

Unlike the tax deductions above, a credit actually directly reduces your tax bill by the dollar. It’s like a gift card you can apply toward your tax bill! If you pay for child care, you can figure the credit and use it to reduce your tax liability. Many people overlook the child care credit, whether they get help through a plan from their work, or pay out of pocket. Make sure to find out if you qualify for this credit, and take advantage of it if you can.

We make a number of investments every day. From our money to our time, we are almost always investing in something. What are you investing in? And how is it going. These great bloggers from around the web share some insight into investing:

1. Three Places Where To Invest For Your Children: You can use these suggestions from Money Q&A to help you help your children. These investment ideas will give your kids a head start on life.
2. Investing in Volatile Markets: Even when things are crazy on the market, you can invest. Out Of Your Rut offers you a helpful look at how you can invest in volatile markets.
3. What Other Bloggers Think of Valuation-Informed Indexing — Part Two: Do you believe in using valuation-informed indexing in your investment efforts? Financial Highway takes a look at what to expect, and what other bloggers think of the technique.
4. Preparing for the Ultimate Cost of Raising Children: The College Years: Enemy of Debt takes a look at the costs of raising children, and the cost of college. Learn more about paying for college, and the importance of investing in your child’s education.
5. Lending Club Returns Now At 11.03%: Lending Club Return On Investment (ROI) — How Do You Measure It?: If you are investing in Lending Club, how do you measure the ROI? Bible Money Matters has some helpful hints for figuring your return.
6. The Importance of Lont-Term Savings & Creating a Strategic Road Map: Len Penzo takes a look at the importance of preparing for the future. Put together a financial roadmap, and you’ll be well-prepared for investing in your financial future.
7. The Payday Loan Trap: While there is clearly a demand for payday loans, and they can help some people, it’s important to be careful. Free From Broke looks at the possibility of getting caught in the payday loan trap.

There’s plenty of financial advice out there. As a result, it’s important to sift through what you hear in an effort to ensure that you do what’s best for you. Here are some interesting insights on finances, and learning about finances, from around the PF blogosphere:

1. Is a poor return a good reason to change your financial advisor?: Over at Canadian Finance Blog, Jim Yih takes a look at reasons to switch it up with financial advisors. Does a poor return mean the end of the world?
2. One Line of Financial Advice?: What’s your favorite financial advice? THE Canadian Personal Finance Blog lists some great one-liners when it comes to financial advice. I’m with him; The Princess Bride is awesome.
3. Financial Lessons From Football: With football season in full season, it’s time to learn a few things. Christian PF takes a look at the ways that football and finances intersect. Are you ready to learn about life and finances?
4. Sound Advice from Unlikely Sources: “It’s the Great Pumpkin, Charlie Brown!”: If you want to learn some solid lessons on finances, you can watch a great classic from the Peanuts gang. The Credit Karma Blog shows you how enlightening cartoon can be.
5. Reader’s Question: How To Prioritize Which Bills To Pay: Money Q&A helps you determine which bills should be paid first. In you are in a tight spot, this bit of financial advice can help you.
6. First Time Home Buyer’s Guide Contest: Join this contest, as explained on Boomer & Echo, and you could get access to great advice, and you could be in the running for an Amazon gift card. Solid.
7. Just Do It: 9 Guilt-Free Ways to Rip Off Your Credit Card Company: Len Penzo points out that sometimes the advice to avoid credit cards at all costs isn’t very good. After all, there are plenty of ways to get the upper hand.
8. Investing in volatile markets: The markets swings have been tough lately. Wondering what to do in a unstable market? Check out Out Of Your Rut’s latest post.

There’s been a lot of talk about plans for a flat tax. Indeed, two Republican candidates recently unveiled two differently structured plans that each can be considered a flat tax. The reason that flat tax plans are getting so much play these days is because they are put forth as simple replacements for our current, complex tax code, and because they could, perhaps, rectify some of the disparities seen in our current tax code.

But, even though we talk about a flat tax as if it’s some monolith, the truth is that there are many different kinds of flat tax plans out there.

Similarities: Everyone Pays the Same Percentage of Income

The main idea joining all tax proposals structured as flat tax plans is that everyone pays the same percentage of their income. At the most basic level, a flat tax of 10% would mean that you pay 10% of your income. So, if you make $100,000, you pay $10,000 in taxes. If you make $20,000, you pay $2,000 in taxes. It’s supposed to be “fair.” No one gets deductions, and there are no loopholes.

Of course, critics of such an austere plan point out that those who are the poorest are still hurt by the flat tax. It may be “fair,” but it isn’t practical for the poor. After all, if you make $100,000 and pay $10,000 in taxes, you still have $90,000 left over to pay for the necessities of life. Someone making only $20,000 probably needs the $2,000 paid in taxes to pay for things like food — and now he or she can’t because it’s gone now.

Such practical realities lead to a number of differences in flat tax structure, some of which actually keep some of the things we are used to in our current system.

Variations on a Straight Flat Tax

Flat tax proposals come in different variations, meant to address the issues that can arise with a straight up flat tax. Some of these variations include:

• No tax paid by the very poor: Some plans exempt those making less than a certain amount of money from paying taxes at all. So, the tax might apply only to those who make more than $25,000, or $30,000. Some plans might vary the threshold based on family size. So, a single person making $25,000 might have to pay taxes, but a family of four might not have to pay taxes until the income level reaches $55,000.
• Deductions: Many flat tax plans come with deductions and exemptions. You might be able to exempt a certain amount of income (Perry’s flat tax plan allows you to exempt $12,500 of your income). Additionally, you would have deductions for dependents, or there would be a standard deduction. In some cases, popular deductions, such as those for mortgage interest and charity, would remain. However, some flat tax plans would only allow those making less than a certain amount of money to claim deductions.
• Investment income, interest, dividends, etc.: Many flat tax plans only levy taxes on earned income. Other income, such as that from capital gains, interest and dividends, is not taxed under many plans. However, some believe that a low flat rate could be used on this type of income as part of the system.
• Tiered flat tax: There are also proposals that offer a tiered flat tax. This would divide income into levels, and a flat tax levied that way. The lowest tier in most tiered plans doesn’t pay tax at all. Then, the other income levels are bundled into anywhere from two more tiers to more than five tiers. Corporations might have two or three tiers for their taxes as well. A tiered flat tax structure may or may not involve deductions, or a tax on other types of income.

What do you think? Is some sort of flat tax desirable? What structure would you prefer?

It’s a good time to take a step back, and evaluate your money situation. As you know, there are a number of great personal finance bloggers out there, with great advice on how you can get your money management act together. Here are some good posts from around the PF blogosphere about properly managing your money:

1. Getting Back on Your Feet After Debt Problems: Once you pay off your debt, you need to get back on your feet. Out Of Your Rut takes a look at what you can do to improve your money situation after you’ve overcome your debt problems.
2. Managing your Finances through a Budget: Financial Highway takes a look at…the budget. As you work to improve your financial situation, you will need a road map, and a budget can be just the thing to help you along your way.
3. No Restaurants in November 2011: Enemy of Debt is taking on an interesting challenge for November: No eating out. This isn’t something I could do, but making challenges for yourself might help you to get your spending under control.
4. A Simple Spending Strategy That Will Do You Wonders: You can treat yourself! Bible Money Matters points out that, if you can afford it, you should treat yourself. It will help you stay out of the dangerous waters of frugal fatigue and overindulgence.
5. Don’t Let Your Purchases Fall Prey to Your Emotions: Over at Free From Broke, you can read about keeping your emotions in control. While it’s fun to buy, sometimes we need to take a step back. After all, we should be in control of our own money.
6. Want Your Kids to Manage Money Well? Teach Them: We all want our kids to succeed. Canadian Finance Blog points out that this means that we have to set a good example for them if we want them to make better money decisions.
7. Cheaper Mortgage Rate Or Free Banking?: Over at THE Canadian Personal Finance Blog, there is a great look at considering other ways to save, if you can’t get free checking.

One of the money moves I am considering right now is refinancing to a mortgage with a shorter term. Mortgage rates are at historic lows, and it would be great to take advantage of that. A mortgage with a shorter term would help us build equity faster, pay off our home faster, and save money in interest costs over time. However, refinancing to a shorter term mortgage isn’t always the best move. Here are some things to think about before you pull the trigger:

Do You Even Qualify to Refinance?

This question has to be answered first. You need to look at your financial situation, and understand whether, practically speaking, you will qualify. Your credit score matters, as does your income, and how much equity you have in your home right now. The Home Affordable Refinance Program can help some people with negative equity, but you need to be aware of the reality that, even so, some lenders may not be interested.

How Much Will You Really Save?

Next, you need to run the numbers on the lower mortgage. If you already have a low mortgage rate, you might not save enough to make the refinancing worth it. There is a great refinance calculator at HSH.com that can help you run the numbers. Take into account fees associated with refinancing, as well as what your rate is already. The rule of thumb is that you should refinance to a rate that is at least 1% lower to make it worth it.

Can You Afford to Refinance to a Shorter Term?

While the savings in your interest payments are potentially huge, it’s important to realize that, in terms of cash flow, it might not be the best move for you. A shorter term, even with a lower interest rate, usually means higher monthly payments. If that is the case, you need to make sure that you can handle them. Look at your monthly expenses and income. If the higher payments puts you too close to the edge of what you can afford, you might want to reconsider. A lot of the decisions we make have to do with cash flow in the present, rather than strictly what will save the most in the long run.

Do You Want to Lose the Flexibility of a Longer Term Loan?

Perhaps you feel as though you can afford the higher payments that come with refinancing to a shorter term. Even if you can afford the new payment, think twice before locking it in. You can always pay extra on your mortgage each month, even if you keep the longer term. And, if you experience a financial setback, you can always reduce what you pay and still meet your required payment. You don’t have that flexibility once you refinance. Instead, you are locked in to the higher payment, and if you can’t meet that obligation you could lose your home. The flexibility factor is one to consider in conjunction with your immediate cash flow situation.

Refinancing to a shorter term is a big decision. Think through the possibilities before taking that step, and make sure it really will be the best thing for you.

Most of us want what’s best for our kids. We want to teach them good habits, and help them succeed. This includes teaching them about money. However, you don’t want to just talk to your kids about money; you want to set a good example as well. So, before you do something with your money, remember that your children may be watching — and what you do is far more powerful than what you say.

1. Are Your Actions Setting Up Your Children for a Lifetime of Debt?: Look at your spending habits — especially while you are out shopping. Enemy of Debt looks at how over-spending on your child can be bad in the long run. Don’t let your actions now teach your child how to be in debt.
2. How to Open and Help Manage Your Child’s First Bank Account: Over at Financial Highway, you can read about how to help your child open a bank account and manage his or her money. Few things are as effective as learning by doing.
3. Which Parent Should Stay Home With the Kids?: Out Of Your Rut tackles this difficult question. Set a good example for your kids by showing them that “traditional” roles don’t matter as much as doing what’s right for your family. A great look at deciding who should stay home.
4. Money’s Purpose – A Tool, Test and Trademark: Christian PF takes a look at the purpose of money. You need to figure out how you feel about money so that you can set a better example for your children, teaching them important financial values.
5. Five Things You Should Do With A Pay Raise: When you get a pay raise, let your kids see you using it wisely. Money Q&A has some great ideas for things you should be doing when you get a windfall.
6. Does Your Job Define You?: Teach your kids something about work and career. Boomer & Echo takes a look at what your job should be.
7. Extreme Penny Pinching!: This fun article at the Credit Karma Blog will have you laughing. But, seriously, don’t do these things in front of your kids. They’ll grow up to be horrible human beings.

Are you ready for the harsh financial realities that exist? There are any number of harsh realities in life, and some of them are financial. Here are some great posts from the last week, taking a look at how you can cope with some of the harsh realities of a financial life:

1. 18 Frightening Financial Facts You Didn’t Know About Halloween: You might love Halloween, but you do need to be careful. Len Penzo shares some rather frightening figures about this ghoulish holiday.
2. The $5 Debit Card Fee: You Talk the Talk, But Will You Walk the Walk?: A number of us are up in arms over Bank of America’s debit card fee. However, when push comes to shove, will you really take action? The Credit Karma Blog takes a look at whether or not people are really ready to leave.
3. Bank Fees (A Video Discussion): THE Canadian Personal Finance Blog offers a look at Louis CK’s take on bank fees. Funny and real.
4. Have You Considered Wedding Insurance?: Over at Canadian Finance Blog, you are asked to consider wedding insurance. After all, what happens if something goes wrong and the wedding is canceled or postponed? Wedding insurance can help.
5. Voluntary Simplicity: If you are concerned about where your money is going, you can take a look at this post from Boomer & Echo. Learn more about getting out of the materialsim rut, and seeing if voluntary simplicity is right for you.
6. What is Occupy Wall Street and Should You Care?: Free From Broke takes a look at what is going on in New York — and around the country. A great look at democracy in action, and why you should consider paying attention to all the hullaballoo.
7. The Kindle Fire: A Frugal Ipad And Tablet Alternative?: Bible Money Matters looks at the upcoming Kindle Fire. If tablets like the iPad are too rich for your blood, the Fire might be a good choice.

Anyone who knows me is well aware that one of my very favorite things to do is to travel. I love going new places, seeing new things, trying new foods and meeting new people. My discretionary savings/lifestyle fund is almost entirely devoted to trips.

Of course, travel can be expensive. Even the most frugal travelers occasionally spend more than they want to. One way you can reduce the overall cost of travel, though, is to deduct it on your taxes. Of course, this only works if you are traveling for business. If you are hitting the road, and you will be conducting business, there’s no reason not to deduct some of your expenses. Just make sure you understand the rules so that you don’t end up in big trouble with the IRS.

What Constitutes a Business Expense?

If you are going to deduct travel expenses as business expenses, you had better know what constitutes a business travel expense. First of all, you need to be able to say that your travel will be mostly for business purposes. One of the easiest ways to handle this issue is travel to attend conferences or trade shows.

I went to Chicago last weekend for FINCON. Since I make a living as personal finance blogger, it’s pretty much a no-brainer that a conference meant to help financial bloggers do what they do better is a business travel expense. My airfare, conference registration, hotel room, ground transportation costs and 50% of my meals are tax deductible. The IRS might not be so forgiving if I headed to Dragon*Con and try to deduct that; as much as I enjoy sci-fi/fantasy, it’s not really something connected to my business.

Realize, though, that some of your expenses aren’t deductible. For instance, while the main purpose of my trip to FINCON was business related, I couldn’t deduct any expenses related to sightseeing. So, while I could deduct the cost of the can ride from the airport to the hotel, the cab ride to the Sears Tower is not exactly tax deductible.

You can also deduct 50% of the cost of entertaining a client. Of course, it is important that you discuss business. There is a big gray area here. If you are meeting for a business lunch, and you treat your client as you discuss a partnership agreement, that’s something you can deduct. However, if you’re using your meeting as an excuse to eat expensive food and maybe see a show, and business isn’t really discussed much at all, you might have a harder time selling that in an audit.

Document, Document, Document

Whenever you deduct anything on your taxes, you should have documentation. If you are meeting for lunch, or if you are entertaining a client or potential client, then you ned to make a note of the date, who was present, and what was discussed.

You also need to save your receipts. I keep my tax-related receipts in a specific file so that they are easy to access at the end of the year. I make a small note on the back of the receipt, stating what business function the receipt was for. Keep the receipts with your copy of the tax return. You may not have to send them in with your forms, but if the IRS has a question or decides to audit you, you will need a copy of the receipt (always retain a copy for you; don’t ever send off your only copy to anyone).

With the right planning, you can get more of a bonus from your travels by using your expenses to offset a portion of your income.

Do you wish you had more money in your budget? Many of us do. But what are you doing about it? Are you taking action to either spend less or earn more? (Or do both?) If you want to improve your budget outlook, you need to first look at what you’ve been doing with your money. Here some great posts from around the PF blogosphere about what you can do to improve your budget situation:

1. The Real Secret to Achieving Financial Freedom on a Modest Income: Len Penzo takes those who complain that they don’t earn enough, while still buying all sorts of “wants.” The real secret to achieving financial freedom is understanding the difference between needs and wants, and making tough choices.
2. Why Doesn’t the 80% Rule Offer Enough Money To Retire?: Over at Bible money Matters, there is an in-depth look at the factors that can erode your nest egg. Watch out: the 80% rule may be insufficient.
3. Vacationing On A Budget: 2 Money Saving Tips: Christian PF offers a look at 2 important — and practical — tips for saving while on vacation. Stick to your budget and have fun, too.
4. Care for Your Car on a Budget: The Credit Karma Blog has some great ideas for caring for your car for less. You can actually save money by doing a lot of the maintenance yourself.
5. No More Car Loan: 7 Steps to Stop the Cycle of Car Payments: If you want stop the debt related to car loans, you can follow these steps offered by Boomer & Echo. A great way to keep more of your money by avoiding auto loans.
6. Small Changes Add Up To Big Savings: You really can make some small changes in your life, to add them up to big savings. Canadian Finance Blog takes a look at how small choices can have a big impact.
7. How to Prove Your Usefulness, Keep Your Job, and Maybe Even Get Ahead: Be Indispensable: Want to have a bigger budget to begin with? Free From Broke takes a look at how you can make yourself indispensable at work.

In order to find financial success and freedom, it’s vital to live within your means. That means that you need to carefully consider what you can afford — and what you can’t. If you continually make purchases that you can’t afford, you could very well end up in debt. As you consider your needs, check out these helpful posts from around the blogosphere:

1. How To Avoid Becoming House Rich & Cash Poor: The Digerati Life takes a look at some of the problems that can come if you have too much house for your budget. Avoid letting your home restrict your disposable income by sticking to a budget and looking for balance.
2. Techniques to Erase Credit Card Debt: This guest post on Budgeting in the Fun Stuff takes a look at how you can get rid of your credit card debt fairly quickly. Here are some great ideas for paying down debt, and affording your lifestyle.
3. Can’t Afford Your Gym Membership? Here’s How to Cope: If you want to better afford your healthy lifestyle, Mint.com has some great ideas for making exercise more affordable — even if you can’t afford a gym membership.
4. Is Good Credit Essential To Prosperity?: Retire By 40 tackles the question of credit. Do you need good credit to prosper and find financial freedom? A lot of things are more affordable when you have good credit.
5. The Return of Layaway in a Big Way: Holiday gifts are much more affordable when you can set them aside and pay for them a little at a time. Couple Money takes a look at the return of layaway.
6. Stafford loan? Perkins loan? Private loan? Help!?: Make sure you can afford college with the help of loans. Little House in the Valley can help you figure out which type of loan is best for you.
7. The Path to Financial Freedom: If you are ready to get on the path to financial freedom, Money Crush can help. Some great tips on what it takes to achieve financial freedom.

Life is about learning lessons. And, in finances, there are all sorts of lessons to be learned. From the basics, like spending more than you earn, to ideas about improving your passive income, there are a number of solid lessons for the learning. If you are interested in a few nuggets of knowledge from some great bloggers, here are some of the lessons learned from the past week in the blogosphere:

1. 9 Indispensable Financial tips for Teens & Twentysomethings: Len Penzo, with his typical humorous flair, offers some great insights into finances. These are tips that you must follow in your teens and 20s if you want to build a strong financial foundation for life.
2. Gift Cards Make Terrible Gifts: The holiday season is approaching faster than you think. While you might be tempted to just give a gift card, a guest poster at Sweating the Big Stuff tells you why this is a bad idea. Be very careful of the kinds of gift cards you send out.
3. Recession is the best Professor: Are you ready to learn a lesson from the recession? Over at MoneyMamba, JT McGee shares some insights to be gleaned from the recent economic downcycle.
4. Time That I Do Not Want My Money’s Worth: We’re all supposed to get our money’s worth, right? Well, Everyday Tips and Thoughts takes a look at times when your money’s worth might not be all it’s cracked up to be.
5. Why We Talk So Much About Passive Income While You Still Have To Work Your Ass Off To Make it Happen: Even though you might have “passive” income, it doesn’t mean that there is absolutely no work involved. Especially if you’re a blogger. The Financial Blogger points out that you need to work to get things going — even if you are building passive income.
6. Predicting Stock Returns for Fun and Profit: Barbara Friedberg hosts a guest post from Rob Bennett taking a look at how predictions are difficult when it comes to the stock market. Lesson: You can’t always know what will happen next.
7. Getting Out of Debt Takes a Plan and Accountability [You vs Debt Course]: PT Money takes a look at how you can get out of debt following a great course. Make a plan and do it right.