Tax season has arrived. You most likely are making preparations to file or are
waiting for the outcome if you’ve already filed. Here are some tax-saving tips
that could maximize your refund or minimize what you owe:
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Take extra standard deductions for non-itemizers. If you don’t itemize
deductions, you may be entitled to some extra write-offs. These are additional
standard deduction amounts that get added to your regular standard deduction.
You can claim an additional standard deduction of up to $500 for state and
local real estate property taxes or up to $1,000 if you’re a married joint
filer. The extra deduction cannot exceed the real estate taxes you paid last
year.
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If you are a homeowner, you are entitled to homeownership tax benefits.
Deductions can be taken from a buyer’s or seller’s personal income on a tax
return or can be used to adjust the basis of the home to reduce the capital
gains. In most cases, you can deduct mortgage interest and property taxes.
Depending on your tax rate, these homeownership tax benefits help you in
lowering your federal income tax.
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Deduct job search expenses. If you itemize deductions, you may be able to write
off expenses incurred to search for a new job last year.
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Other deductions that can affect how you file include educational expenses,
dependent care and charitable contributions.
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Subtract fees to charge taxes to your credit card. The IRS says you can treat
credit-card convenience fees paid to charge personal federal income tax bills
as miscellaneous itemized deductions. However, you only get a write-off to the
extent your total miscellaneous itemized deductions exceed 2% of adjusted
gross.
It is worthwhile to consult with your tax advisor on additional ways you can
save when filing your taxes this year.
