It’s Tax Time
Are you prepared for taxes this year? Here are some of the most overlooked tax deductions that I see:
1. State Sales Tax – If you itemize your deductions, you can deduct sales tax. You have the option of using the IRS chart to calculate the deduction or keep track of receipts and write-off the actual amount.
2. State Sales Tax on large purchases – Don’t forget large purchases such as cars, boats, appliances. You can add those amounts on top of the IRS calculation.
3. Student loan interest paid by parents. Students can write-off student loan interest even if their parent’s made the loan payments, (as long as they don’t file as a dependent.) If they file as a dependent, Mom and Dad get to write-off the deduction.
4. Deductions of medicare premiums for the self employed.
5. Refinancing Points
6. Credits for energy saving home improvements such as new windows, insulation, and appliances.
7. Legal fees to secure alimony. Legal fees for divorce are nondeductible but court fees for alimony are tax deductible.
8. Medical payments can possibly be deducted if you itemize. Medical includes insurance payments, co-pays, and prescriptions. Mileage to and from doctor appointments and parking are also deductible.
9. Losses from stolen goods and casualties can also be deductible.
See me for more details. You can also go to the IRS website for more details. www.irs.gov