Wednesday, December 14, 2011

Online Taxes: Miscellaneous Deductions and Credits for Everyone

There are so many credits and deductions available to us that we may not remember them all. Checking the Internal Revenue Service website is the best source for what you can qualify for, but it is a huge site, and navigating it can be time consuming. Articles like this one are another method to getting your information. These articles can give you great amounts of information, and if they are from a credible source, can be easily read and comprehended. Here are a few deductions and credits you may not be aware of.

First, charitable donations are a popular tax deduction. Even giving to a consignment store like Goodwill or something similar is a great help to someone who may be less fortunate. You may think your old clothes or furniture are worthless, but they can make all the difference if the worst happens to an unsuspecting family. Make sure you get a receipt of the value of these items and for the sake of the receiver of the gifts, please make sure they are still in good enough condition for another person to wear them.

Should you forget to get the receipt, you can still write up the values of the items you gave. There is always a risk of an audit though, so take that into consideration. You will not get the deduction if you do not have proof with the receipt in case of an audit, but if you are not audited you will be fine. Honesty is the best policy in this endeavor, and you know what you gave and what you should claim.

You have to have health insurance in our economy to help pay for the staggering cost of doctor bills and hospital stays. Health insurance is almost certainly very expensive, but the good news is that the majority of your insurance premiums are deductible. Self-employed workers can deduct all their health insurance premiums as long as they are put with adjusted gross income.

Educators shouldn't have to pay for the materials they buy for their students to learn. As much as two hundred and fifty dollars can be written as a deduction. Nearly all types of educators qualify for this. Starting from Kindergarten until senior high school, and all aides and upper management can qualify, right up to the principal. These materials can be computer software and equipment, books and periodicals, and even school supplies.

Tax-planning and investing are a crucial part of your future. What many people may not know is they they can be put in your miscellaneous itemized expenses. Legal and accounting fees related to your taxes, business expenses and preparation fees for your taxes, and even estate planning all qualify for this deduction. Annual fees paid to your broker, your long-distance phone bills, the mileage you drive to get to them, and even the investment periodicals you buy can all be deducted.

We cannot control mother nature. Her destructive wrath has caused plenty of damage to our homes and business, and there are several places that are considered “disaster areas” by our president. These losses and damages can be applied to your 2010 or 2009 tax return. Check your local news or the web to find out where President Obama has declared disaster areas to find out if you are in a qualified area.

Using these deductions and credits can be very helpful in giving you an edge on your tax returns. In this struggling economy we have to save any way we can and your taxes is a great way to find extra savings. Processing your taxes online can help you save by getting your return faster and more accurately than by paper filing. Use Online Tax Pros to get the edge on your taxes, and see how much we can help you get on your return.

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