Tax Time: The Top Ten Deductions That Get Overlooked
When it comes to filing your taxes, you’re either excited because you always get a refund or you are dreading it because you think that you’ll owe. Let’s take a look at some commonly forgotten tax deductions.
TOP TEN DEDUCTIONS THAT GET OVERLOOKED:
- Charitable Non-Cash Deductions: All the clothes you bagged up and donated to Good Will, the furniture to Habitat for Humanity and other like items are deductible, but you must have a receipt. Some years ago it was written that you would have to have a receipt to claim non-cash deductions, however, if you forgot to get a receipt you can try to deduct an honest amount for what you donated, there are calculators online, just keep in mind, if you are audited and do not have a receipt, the IRS will disallow that deduction.
- Refinancing Points: yep, you know those points you try to get lowered in your mortgage deal, they are deductible. If you have refinanced your home, your points are deductible too. Check the available calculators online and start deducting.
- All unamortized points; on your old refinancing may be deductible this year.
- Health Insurance Premiums: health insurance premiums you pay may be deductible.
- Educator Expenses: Qualified educators may deduct an extra $250 for materials
- Higher Education Expenses: If your AGI is below $65k or $130k for joint you may be eligible for a deduction up to $4k, a tax break congress had approved through 2011
- Energy Saving’s Home Improvement Credit: Credits are groovy if you can get them, it’s a good dollar-to-dollar deduction.
- Investment and Tax Expenses: If your cost’s are at least 2% of your
AGI or more, you could qualify for this deduction.
- Casualty Deductions: With the many fires that we saw here in Colorado this year, if your area was declared a disaster area, you could claim your loss.
- Retirement Tax Credit: This is a credit that was created to encourage people to with moderate to low-income households to start saving for retirement. You could get a credit of as much as 50% on your first $2000 invested, that’s a thousand bucks.
The deadline for employers to mail out your W2 forms is January 31, 2013.