Most job seekers will agree that looking for a job is a full-time job in itself. Fortunately, Uncle Sam is here to help when it comes to deducting some of the costs related to your job search. Here are some key tax deductions that IRS wants you to know: [Read more…]
Archive for Taxes
You might have heard about the EITC—or Earned Income Tax Credit (also called EIC). This tax credit benefits working people with low to moderate incomes. If you qualify, you can receive a credit ranging from $2 to $6,143, depending on your situation. This can be a huge benefit, especially if you have children. And the IRS estimates that one of five people who qualify for the EITC don’t claim it! Don’t let that be you! [Read more…]
Some important dates for your 2014 taxes:
- January 20, 2015: First day to e-file taxes. IRS begins to process tax returns e-filed and filed on paper. Many software companies will allow you to complete your return prior to this date. Please check with your software provider.
- January 31, 2015: By the last day of January, you should have a W-2 wage & tax form from each employer for whom you worked in 2014. If you haven’t received your documents by then, contact the HR or payroll departments to track them down.
- April 15, 2015: Tax Day! This is the last day to file your state and federal 2014 taxes (for most states), and the last day to file for an extension. Just a reminder – your taxes must be paid by this day even if you file an extension to file your return at a later date.
- October 15, 2015: This is the absolute last day to file 2014 taxes, if you were granted an extension (the deadline for the request to be made is April 15).
- April 15, 2018: If you filed your return by April 15, 2015, this is the deadline to file an amendment to your 2014 tax return. If you had filed an extension, the deadline is October 15, 2018.
If you prepare your tax returns yourself, either by hand or even with tax software, you are likely to end up paying more than you owe. No matter how much you know about tax law or how detailed your software may be, it is likely that you will miss or forget about certain deductions that could lower your tax bill. Even if you use an accountant or tax preparation service, it is a good idea to ask if you are entitled to the following deductions. No one knows more about your spending habits and expenses than you do, and it is ultimately your responsibility to investigate your eligibility for various deductions or credits under the law.
While some of these deductions are taken “above the line”, which means they reduce your total adjusted gross income on which you pay tax, others are only available if you itemize your deductions. It may be more work up front, but itemizing will almost always get you a larger deduction than if you take the standard flat deduction.
1. Medical Expenses
If your total medical expenses equal more than 7.5% (rising to 10% in 2013) of your adjusted gross income, you can deduct them. This includes health insurance, dental insurance and long-term care insurance premiums, medical equipment or medications taken pursuant to a doctor’s orders, and even some of the expenses incurred traveling to and from medical treatment. [Read more…]