The Forgotten Tax Deductions
A few tips about SOME deductions that you may not know about.. Below is a list of possible deductions: These are things taxpayers often miss…
- Volunteer Work. Expenses incurred while doing charitable work, such as mileage, meals, and uniform cleaning fees may be deductible.
- Job Hunting. Taxpayer who itemize and incur costs while job hunting that exceed two percent of the taxpayer’s adjusted gross income can deduct those expenses.
- Military Reservists’ Travel Credits. Reservists and members of the National Guard who travel more than 100 miles and stay overnight for training can deduct related expenses.
- Child and Other Care Credits. Summer child care costs for day-camps can be deductible. However, you cannot deduct expenses for sleep-away camps. Care expenses for adult dependents may also be deductible.
- Mortgage Refinancing. If a homeowner refinances and uses proceeds to improve their principal residence, they may be able to deduct the points paid on the loan for the year of purchase.
- Medical Expenses. Travel expenses to and from treatments, including mileage and meals, may be deducted if the taxpayer’s medical expenses reach the 7.5 percent of adjusted gross income threshold.
- Retirement Savings. Moderate and low-income taxpayers may be able to save as much as $1,000 on contributions to an eligible retirement account.
- Educational Expenses. There are many education expenses that can be deducted – tuition and fees, the Lifetime Learning Credit, and the Opportunity Tax Credit. If a taxpayer is pursuing any kind of education, it’s worth looking into.
- Energy-Efficient Home Improvements. There are still credits worth up to $500 for energy-efficient home improvements available for 2011 returns.
These simple tips may make a big difference in their bottom line.
Clearing up the tax rumors~ Changes for tax year 2013 include:
Personal and dependent exemptions will increase by $100 to totaling $3,800
Standard deductions have increased in all filing categories including a $300 increase for married couples filing jointly
The maximum earned income tax credit will increase to $5,891
Yes we still have the American Opportunity Tax Credit for this year
First day to E-file is Monday January 27, 2014. So come see me on January 14, 2014 and get the jump on all the late filing "Come see Me!!
55 personal tax deductions to itemize on your 2014 tax year:
1. Clothing only required for work that is not appropriate for everyday wear (clothing cleaning expense)
2. Accounting fees for tax preparation services and IRS audits
3. Alcoholism and drug abuse treatment
4. Amortization of premium on taxable bonds
5. Appraisal fees for charitable donations or casualty losses
6. Appreciation on property donated to a charity
7. Casualty or theft losses of personal property
8. Cleaning and laundering services when traveling
9. Commissions and closing costs on sale of property
10. Contact lenses, eyeglasses, and hearing devices
11. Contraceptives, if bought with a prescription
12. Costs associated with looking for a new job in your present occupation, including fees for résumé preparation and employment of outplacement agencies
13. Depreciation of home computers
14. Dues to labor unions
15. Education expenses to the extent required by law or your employer or needed to maintain or improve your skills
16. Employee contributions to a state disability fund
17. Employee’s moving expenses
18. Federal state tax on income with respect to a decedent
19. Fees for a safe-deposit box to hold investments (e. g., stock certificate)
20. Drug test and physical fee associated with employment
21. Fees paid for childbirth preparation classes if instruction relates to obstetrical care
22. Foreign taxes paid
23. Foster child care expenditures
24. Gambling losses to the extent of gambling winnings
25. Hospital services fees (laboratory work, therapy, nursing services, and surgery)
26. Impairment-related work expenses for a disabled individual
27. Repairs to your home
28. Investment advisory fees
29. IRA trustee’s administrative fees billed separately
30. Lead paint removal
31. Legal fees incurred in connection with obtaining or collecting alimony
32. Long-term care insurance premiums
33. Margin account interest expense
34. Medical transportation, including standard mileage deduction and lodging expenses incurred for medical reasons while away from home
35. Mortgage prepayment penalties and late fees
36. Out-of-pocket expenses relating to charitable activities, including the standard mileage deduction
37. Health insurance premiums is self-employed
38. Penalty on early withdrawal on savings
39. Personal liability insurance for wrongful acts as an employee
40. Points on a home mortgage and certain refinancing
41. Protective clothing required at work
42. Real estate taxes associated with the purchase or sale of property
43. Seller-paid points on the purchase of a home
44. Special equipment for the disabled
45. Special schools and separately stated fees for medical care included in tuition
46. State personal property taxes on cars and boats
47. Subscriptions to professional journals
48. Theft or embezzlement losses
49. Trade or business related tools with life of 1 year or less
50. Worthless stock or securities
51. Mortgage loan interest paid
52. College expenses (Books, supplies, tuition Etc.)
53. Out-of-pocket expense for work related training program and seminars
54. Co-payment from a doctor’s visit.
55. Home office expenses Categories:
First-Time Home buyers Credit Look-up Tool
Helpful hints for Taxpayers Who Must Repay the Credit:
The IRS no longer mails reminder letters to taxpayers who have to repay the First-Time Home-buyer's Credit. To help taxpayers who must repay the credit, the IRS website has a user-friendly look-up tool. Here are four reminders about re-paying the credit and tools:
1. Who needs to repay the credit? If you bought a home in 2008 and claimed the First-Time Home buyer Credit, the credit is similar to a no-interest loan. You normally must repay the credit in 15 equal annual installments. You should have started to repay the credit with your 2010 tax return.
You are usually not required to pay back the credit for a main home you bought after 2008. However, you may have to repay the entire credit if you sold the home or stopped using it as your main home within 36 months from the date of purchase. This rule also applies to homes bought in 2008.
2. How to use the tool. You can find the First-Time Home buyer Credit Look-up tool at IRS.gov under the ‘Tools’ menu. You will need your Social Security number, date of birth and complete address to use the tool. If you claimed the credit on a joint return, each spouse should use the tool to get their share of the account information. That’s because the law treats each spouse as having claimed half of the credit for repayment purposes.
3. What the tool does. The tool provides important account information to help you report the repayment on your tax return. It shows the original amount of the credit, annual repayment amounts, total amount paid and the remaining balance. You can print your account page to share with your tax preparer and to keep for your records.
4. How to repay the credit. To repay the First-Time Home buyer Credit, add the amount you have to repay to any other tax you owe on your federal tax return. This could result in additional tax owed or a reduced refund. You report the repayment on line 59b on Form 1040, U.S. Individual Income Tax Return. If you are repaying the credit because the home stopped being your main home, you must attach Form 5405, Repayment of the First-Time Home buyer Credit, to your tax return.
Today's Tax Tip:Taxable and Nontaxable Income Most types of income are taxable, but some are not. Income can include money, property or services that you receive.
Here are some examples of income that are usually not taxable:
Gifts, bequests and inheritances;
Damage awards for physical injury or sickness;
Cash rebates from a dealer or manufacturer for an item you buy and Reimbursements for qualified adoption expenses.
InTouch Tax Solutions, "We put the Gloves on and Fight for every penny you deserve..