Every year there are changes that are made in most homes. These changes always affect the taxes filed. In order for you to save up on tax, there are a few things to consider.
Check the following money saving tax moves before filing your tax returns
If you changed or set up a business in 2011, then the expenses for all the movements will be tax deductible.
• To be eligible for job search expense, you have to have used more than 2% of your adjustable gross income. Make sure to list your deductions. This means that those expenses greater than the 2% may be claimed back.
• Another tax deductible expenses include that moving expenses. However, this depends on a test of time and distance.
• All unemployment benefits received from 2011 onwards are taxable.
• If you use your home as your central place of business, as a meeting place for customers or you have a separate structure detached from your home, used as an office, then the home office deductions will apply.
If you sent a child to college or had another one join the family.
Or, if you are a parent you may be able to save up a dollar or two when filing your returns.
• If you have a boyfriend, girlfriend or any other individual that qualifies the test of being a relative and a dependent then you will qualify for dependent deductions.
• The government is generous enough to provide for education tax credits and deductions for those individuals who are paying expenses for their education or their spouse’s or dependent’s education.
• Qualified expenses of up to 35 percent of qualifying expenses are deductible under the child and dependent care credit.
• If you decide to adopt, then you will qualify for a Qualified Adoption Tax Credit of up to $13,360.
As long as you own a home, bought it or refinanced it, you may be lucky to receive some form of deductions on your tax to help you reduce the cost of being a property owner.
• The loan origination fees paid to refinance your mortgage taken up when the interest rates were lower then you may qualify for the mortgage refinance deductions.
• The overall Energy tax credit was dropped in 2011 but if you have new insulation, roofs and doors you may be able to save up to $500 on deductions.
• Most first-time Home buyers are lucky. This is because, if they took up credit for that purpose, they tax credit will be paid through their tax returns filed yearly.
From these money making tax moves, which one will you use to reduce you tax liability?
- Unusual Tax Deductions Can Be Risky (2011taxes.org)
- Six Tips On A Tax Credit For Retirement Savings (2009taxes.org)