According to Myles Haverluck tax bills can be reduced with reductions, and you need to ensure you take advantage of every credit you’re entitled to deduct. Haverluck says most taxpayers simply overlook available credits. Here are five essential tax filing tips to take advantage of;
1. Charitable Contributions
Charitable expenses are a vast write-off. All your typical donations add-up during the year, and are deductible. Some examples include Salvation Army donations, like clothing, and furniture are eligible and don’t forget the car you contributed to the veteran’s association. The IRS also allows deductions for your charitable time and energy; if you help by purchasing, preparing and driving the meals to a destination for non-profit organizations you can deduct the expense.
2. Gambling Losses
Do you have more losses than wins at the casino? What about those discarded lottery tickets? Haverluck says if you itemize your deductions, your losses are deductible on your federal tax return. Of course, to remain audit-free you should keep a journal of your losses, including dates and the types of gambling games you engage in. Keep those lottery tickets handy, with a summary of your losses and any winnings. Most people are often surprised at a year’s tally.
3. Tax Preparation Fees
Taxpayers are stunned to learn their fees for tax preparation are 100% deductible. According to Myles Haverluck tax preparation software, or if you use a CPA to prepare your taxes, the expense is deductible, including any electronic filing fees.
4. Capital Improvements
This is certainly a grey area, but Haverluck says certain improvements to the home can be fully deductible. However, if it’s time to sell your home, then begin pulling out all those receipts that show your expenditures paid for improvements. These deductions benefit you only when you sell.
a. Home Additions: these are the most obvious improvements like a new bathroom, bedroom, porch, a garage or even the installation of a satellite dish can be deducted.
b. Heating and A/C Systems: new or upgraded systems both qualify for tax deductions and central air systems, a fireplace or energy efficient upgrades often have additional tax credits.
c. Improvements for Disabled and Elderly: improvements that address accessibility and safety concerns are tax deductible. Exterior grading modifications that help improve access to a home for the elderly and disabled are deductible. Additionally, home improvements that both increase the value of the home and qualify as a medical requirement can still be deductible.
5. Un-reimbursed Employee Expenses: It’s a given that employees will incur some necessary expenses that are rarely reimbursed. These type of expenses are typically considered a personal investment by employers, yet many are tax deductible, as long as it’s appropriate and helpful to your career.
People overlook legitimate deductions every year, but here you’re reminded by Myles Haverluck tax planning that is proactive can lower your tax bill.