Are You Overlooking Possible Tax Deductions?
I found a helpful article by Intuit Corporation on the most commonly overlooked potential tax deductions. Did you know that recent numbers show that “more than 45 million of us itemized deductions on our 1040s—claiming $1.2 trillion dollars’ worth of tax deductions”? So if you are among those 45 million who itemized their deductions, here are a few to look for that I picked from the Intuit list of their Top Ten.
- State Sales Tax – Did you purchase a vehicle, boat or building materials? State sales taxes are deductible but vary by your state and income level. Be sure to use IRS tables or calculators to determine what you may qualify to deduct.
- Charitable Donations that you made in cash or other out of pocket expenses such as costs for driving for a volunteer effort, organizing help at a homeless shelter or other qualified charities that you supported with good deeds. Your expenses should be carefully documented and deducted.
- Interest paid by your Mom and Dad on student loan debt can qualify as a deduction by a child who is no longer a dependent.
- Millions of taxpayers overlook the Earned Income Tax Credit. This is actually a refundable tax credit for families considered “low income” because of a job loss or reduced hours worked over the prior year.
This is just a small list of potential deductions to be careful not to overlook. I have used online filing software to do my own return for the past ten years and have never had a single problem. Today’s software programs typically ask you all the questions you need to file an accurate return. Once you have your W2 form from your employer or a 1099 if you are an independent contractor, you are ready to begin filing your return.
Crown has identified an IRS approved tax preparation software company that shares our values. If you are a do-it-yourselfer and like to file on-line, go to Crown.org and check out the link to file on-line through our website.