Income Tax Deductions
Storage Units
Storage units rental fees can also add up after a while.
If you’ve had items in storage for more than 3 years, and never used them, there is a very good chance that you will never need those items again.
Consider giving them to a charitable organization. Your benefits will be two-fold.
First, you will not have to pay a monthly rental fee anymore.
(Or, at least, you will be able to downgrade to a smaller unit now that you have fewer items to store).
Second, your donations are income tax deductible. See Income Tax Deduction: Donations for more details.
Income Tax Deduction: Earned Income Credit
According to the IRS, the earned income credit (EIC) is a tax credit for certain people who work and have earned income under $41,646. A tax credit usually means more money in your pocket. It
reduces the amount of tax you owe. The EIC may also give you a refund.
To find out more information about the earned income credit, go to: http://www.irs.gov/pub/irs-pdf/p596.pdf.
Income Tax Refund Anticipation Check or Loan
Beware of Income Tax Refund Anticipation Checks or Loans.
Convenience comes with a price.
For example, the fine print of H&R Block’s Instant Money Refund Anticipation Loan reads: “Fees may apply”.
H&R Block’s State Refund Anticipation Check’s (RACs) fine print states: “State RACs are available in most states for $13″ and “Fees and additional terms and conditions apply.”
Income Tax Tip: Pay on Time
Pay your amount due to the IRS on time.
This will prevent you from having to pay unnecessary penalty fees AND interests.
TaxCut Software
TaxCut makes it much easier to file your income tax return, and costs less than hiring an accountant.
First, it calculates everything, so you do not have to do any math.
Second, it saves time.
Third, and most important, it makes it more difficult to overlook deductions, credits and tax breaks.
Finally, it includes free eFile for your federal tax return.
TurboTax Software
TurboTax makes it much easier to file your income tax return, and costs less than hiring an accountant.
First, it calculates everything, so you do not have to do any math.
Second, it saves time.
Third, and most important, it makes it more difficult to overlook deductions, credits and tax breaks.
Finally, it includes free eFile for your federal tax return.
Income Tax Deduction: Heloc Interest
Very similar to mortgage interest. Heloc (Home equity line of credit) interest is also to be included in “Itemized Deductions”.
Income Tax Deduction: Mortgage Interest
This is a big one! For most families owning a house, this will be the most important deduction to include in your “Itemized Deductions”.
Income Tax Deduction: Car Taxes
You can deduct the License Fee portion of the DMV’s Vehicle Registration fees under “Itemized Deductions”.
Income Tax Deduction: Property Taxes
You can deduct your property taxes (taxes paid to the county when you own a house) under “Itemized Deductions”.
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