Tax Deductions

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Looking for more ways to save money?  Consider these deductions when preparing your taxes.  You do take deductions, right?!!

* “Making Work Pay” deduction.  You may have already received the $400.00 single, ($800 couple) in your paycheck.  If NOT, ask your tax preparer about this deduction!  (Only for salary of $75K or less a year, $150K couples or less a year.)

* “American Opportunity Tax Credit” gives you a $2,500 tax credit!  (This replaces the “HOPE” credit.  For single filers salary is $80K or less a year and $160K or less a year for couples.)  Books, materials also included.  Read more about it HERE.

* 1st Time Home Buyers Tax Credit: Gives new home buyers for first time a tax credit of up to $8,000.  You must be first time buyer of home costing more than $80K.  There are stipulations (as always).  You must have home under contract by April 30, 2010 and closed by end of June 2010.  More info click HERE.

Mileage deduction.  You already know about the deduction for miles driven for work (not the miles you use to GET to work, but miles driven for work related business.)  How about miles for Medical Care? .24 cents a mile for travel for exclusive medical care–doctor, eye exam, chiropractor, dentist, etc.  Any trip to a medical professional is deductible.   Charity work? .14 cents a mile for travel to charities in which you volunteer your time!

* Property Taxes. Ask your tax preparer about this deduction that goes on Schedule L.

* Tax Preparation. Expenses involved with preparing your taxes are deductible!  Money you paid to a tax preparer are deductible including supplies used to prepare your taxes.

* Childcare Tax. Ask your tax preparer about the Childcare Tax CREDIT.  Through your employer in your FLEX account (using pre-tax dollars) you can use up to $5,000.  But ask your preparer about an additional $1,000 of your own money spent outside of FLEX that could be deductible.

New Vehicle Tax. Did you purchase a new vehicle in 2009 between mid February and end of the year?  If so, you may deduct the new vehicle sales and excise tax.  (Also may go on schedule L if you don’t itemize.)

Unemployed? The money you spend looking for a job is deductible!  Expenses involved in a job search including travel, preparation of a resume, long distance phone calls, stamps to mail related items and more are all deductible.
Did you know the first $2,400 of your unemployment benefits are TAX FREE?

These are just some of the many deductions you should be taking on your taxes to further save money.  Also visit White House web site for more.

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