Frustrated with trying to maximize deductions and credits with TurboTax on your taxes? Let TurboTax guide you perfectly through the process!
Maximizing deductions and credits on your taxes can be a daunting but rewarding task. Fortunately, TurboTax can help you quickly determine which deductions and credits you qualify for, calculate your tax return accurately, and maximize your tax savings in the most efficient way possible.
Determine Your Eligibility for Tax Credits.
Before you can maximize your deductions and credits, you need to determine which available tax credits, if any, you are eligible for. TurboTax makes it easy and fast to determine if you qualify for any of the following popular tax credits: Earned Income Tax Credit (EITC), Child Tax Credit, American Opportunity Credit (AOC) and Retirement Savers’ Credit (RSC). You’ll need to provide information relating to your income level and the number of qualifying children in order to accurately determine the amount of these credits that you can claim.
Maximize Itemized Deductions as a Taxpayer.
As a taxpayer, one of the best ways to maximize deductions and credits is to itemize deductions. This means listing all eligible expenses you want to deduct from your taxable income. It’s important to remember that many taxpayers benefit from claiming both line-item and standard deductions. TurboTax makes it easy to determine which method will get you the most back on your taxes. From mortgage interest and medical bills to charitable donations and state sales tax, there are many items you may be able to deduct when completing your taxes with TurboTax.
Fully Utilize the Earned Income Tax Credit (EITC).
The Earned Income Tax Credit (EITC) is intended to help low-to-moderate income families get a tax break. To qualify, you must earn a certain amount of money from working, have a valid Social Security number, and file taxes with the IRS. There are several other qualifications for claiming this credit so be sure to work with TurboTax to make sure you get everything you qualify for.
Consider Family-Based Tax Credits and Deductions.
Families can also benefit from a variety of family-based tax credits and deductions. These include the Child and Dependent Care Credit, which helps families offset the cost of quality childcare and education for children under 13. If your family qualifies for the American Opportunity Tax Credit you may be able to earn up to a $2,500 tax credit per qualified student. Additionally, if you adopt a child, you may be eligible for an adoption tax credit. Be sure to work with TurboTax for advice on these types of credits and deductions.
Understand Rules and Limitations on Business Expense Write-Offs.
When it comes to business-related deductions, there are some rules and limitations that need to be considered. For instance, you will need to have detailed records of any business mileage in order to receive an accurate deduction. Business travel meals must also be documented so that IRS agents can verify that expenses were incurred for the purpose of conducting official business. With TurboTax’s expert advice and accurate recordkeeping, you’ll be able to take full advantage of potential deductions and credits in the most efficient manner possible.
A Guide to Maximizing Deductions and Credits with TurboTax by Steve