It is estimated that 95% of workers and their families will get a tax break on their 2011 taxes… will you be among them? All it takes is a little work. And you can really benefit from taking the time to carefully look for some ‘hidden’ deductions, things you may not have thought of yet. Remember, each eligible tax credit or deduction will either increase your tax refund or reduce the taxes you owe. Cha Ching! Your hard work just paid off…
We recently talked about Education Tax Credits and Medical and Dental Expenses. But if you see yourself in some of the categories listed below, other deductions may be yours…
Family and Home:
Did you pay more than 50 percent of your parents’ financial support and medical expenses? If those expenses exceeded 7.5% of your AGI, you may qualify for a neat deduction.
Did you buy a house? Check to see if you can deduct any mortgage origination fees or discount points you paid. Other things to check are the costs associated with selling your home, such as the real estate commission you paid, legal fees, and closing costs.
What about your car? Did you buy a new one in 2011? Depending on your income and filing status, you may be able to deduct sales tax on the purchase.
For your community:
Did you do volunteer work in 2011? Research mileage allowance for your charity-related travel, childcare expenses while volunteering, and possible expenses you incurred as a result of mentoring (if you used your own funds to pay for meals or event tickets, etc.) .
Business and Education:
Are you a small business owner or self-employed? Be sure to collect your receipts for taking customers out – a percentage of entertainment and dining costs may be deducted. (Hint: keep the categories separate, as the percentages are different for each!)
Did you travel for business and have to pay those pesky baggage fees to be able to carry your business supplies or materials? Take a look at the deduction of those amounts.
Are you itemizing your deductions? Be sure to think about some miscellaneous items in your professional life, such as subscriptions to publications or associations. And here’s something to think about: did you pay fees for investment advice, safe deposit box, or tax preparation?
Did you sit on a jury last year? You may be able to deduct the jury pay from your taxes, if you were still getting paid at your regular job.
These are just some of the things you can see as you collect your tax information. But remember, tax laws change and you need to keep up with the tax laws to know what deductions are available. Make sure you’re eligible for all the deductions you’re taking; you don’t want to have to return them in a future audit!
For more information on tax law help, visit: http://www.millertaxlaw.com
