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Digital News Report – Tax deadlines are coming close and there are several things to look to see if you can get a credits or deductions on the 2010 federal tax paperwork. According to Jackson Hewitt Tax Service® there are several tax credits and deductions that are often missed by people that could help save them money on their taxes.
You might not qualify for each of these tax credits or deductions. Learning about what is available may help you plan your taxes around them, or you may find yourself being able to qualify for them. Another problem with changing tax laws is that there could be new tax credits or deductions that are available that a person may not be aware of, and that is why they miss it when filing their taxes.
It is important to make sure that you actually qualify for the deductions or the tax credits. The IRS website has a wealth of detailed information that will help you to determine if you can qualify for the particular deduction or credit. So take the time to make sure that you are actually know without a doubt that you qualify. You can also call the IRS with your questions. If you still are not sure, you can also go to a certified public accountant who is often well versed on the current tax laws.
According to Jackson Hewitt Tax Service®, the tax credits to look for are the Alternative Motor Vehicle Credit, The Child Tax Credit, The Additional Child Tax Credit, Earned Income Tax Credit, The American Opportunity Tax Credit. The deductions to look out for are Medical expenses, Job expenses, and Property expenses.
Tax Credits:
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The Alternative Motor Vehicle Credit is for when you buy a qualifying new vehicle. These vehicles are specific and could be for the type of fuel it uses, so you need to know which one will gain you a credit.
The Child Tax Credit will give you up to $1,000 for each qualifying dependent child. They have to meet certain criteria for living with you and have to have been under 17 at the end of 2010 to qualify.
There is also the Additional Child Tax Credit which is for people that earned $3,000 or more and didn’t use up all of the Child Tax Credit. It might be possible to get a refundable credit up to $1,000 per child.
The Earned Income Tax Credit (EITC) is intended for low-income workers that can get a refundable credit depending on how much income they made. You don’t have to have children to get this credit. You can get this credit only if your income meets the criteria. Having children gets you a bigger refundable credit however with the max credit for three or more children.
The American Opportunity Tax Credit offers a credit up to $2,500 for qualifying tuition, feed, and other expenses related to going to college or a qualifying higher education facility. Only 40 percent is refundable up to $1,000.
Deductions:
Medical expenses can be deducted and these included travel to medical facilities, doctor offices, and nursing homes. Medical related things such as aids and equipments are included. So are hospital fees.
Job expenses can be deducted if they are related to your employement. If you pay for education that helps your job you might be able to deduct this. You can deduct the costs of professional journals, magazines, newspapers, union dues if they relate your job. If you job requires you to use your mobile phone you could deduct those phone charges related to work. Also self-employment tax and insurance premiums could be possibly deducted.
Property deductions can be overlooked. Most homeowners know to deduct their mortgage interest off on their taxes but there are other deductions that can be overlooked. You can deduct moving expenses, personal property taxes on cars and boats. You can deduct casualty and theft losses, but make sure that you follow the guidelines carefully.
Conclusion
If you are not sure what to do, the best thing to do is to seek out a professional tax preparation service that is in the know of all the current tax laws. It may cost more money upfront, but you also might end up saving more money on the tax return itself.
By Victoria Brown