Tax season is here, and before you sit down to prepare your 2010 tax return, note these commonly overlooked tax deductions you could be claiming in order to pay less to the IRS!
Not only do tax payers have three extra days to file their taxes on April 18th instead of the 15th this year, but with these helpful tips you could possibly pay less taxes to the IRS! Make sure you’re claiming all the deductions and credits you’re qualified for in order to pay less.
Child Tax Credit: Earn up to $1,000 on each qualifying child who’s under 17 at the end of 2010 in addition to the credit for child and dependent care expenses, which can be up to 1,050 per child or $2,100 for two or more children.
The Retirement Savings Contributions Credit: For those with low to moderate incomes, this credit helps individuals with $27,750 and married couples with joint incomes of up to $55,500 save money for retirement. Qualifying tax payers could earn a credit of up to $1,000.
Energy and Appliance Tax Credit: It pays to be green; those who made energy-efficiency improvements to their homes can deduct up to 30% of the cost — up to $1,500. Approved improvements include insulation, new windows, water heaters and air conditioning and alternate energy like solar equipment.
Mileage: We drive everywhere in Los Angeles, and with this tax break, you can deduct mileage driven for work and other purposes to save a significant amount of money. Business mileage equals 50 cents per mile; medical and moving mileage equals 16.5 cents per mile; and charitable equals 14 cents per mile.
Miscellaneous deductions: Miscellaneous expenses like tax preparation, job hunting costs, business car expenses and professional dues can be deducted if they total more than 2 percent of your adjusted gross income.