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Tax season is fast approaching and if you’re like most people, you’re trying to ensure that everything is in tip-top shape so that you can receive your tax returns with no issues and you can get the most of your tax deductions.
The more you know about what you can and cannot do in regards to taxes, the better off you’ll be this year.
Claiming income?
Did you know that it is recommended that you claim ALL of your income. Many people do not know that income such as side income, winnings from gambling, income from online side hustles, yard sales, sales of old clothing, flipping, just about any monies that you earn should be claimed.
This is a very good practice so that you never get audited for such earning that may be discovered in the future.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break for 40 plus years, yet it is severally overlooked by many workers.
According to the IRS,
The EITC could be worth up to $6,269. The average credit was $2,482 last year [in 2016].
One requirement for this is a Taxpayer who works and earns under $53,505.00.
You can read more about this here.
Free tax filing programs
Free File Program
If your income is below $66,000, you qualify to use the Free File tax preparation software.
Free File will do the hard work for you with brand-name software or Free File Fillable Forms.
You can read more about this here.
Volunteer Income Tax Assistance:
The Volunteer Income Tax Assistance (VITA) is a program that offers free tax help to people who make $54,000 or less, persons with disabilities and limited English speaking taxpayers who need assistance in preparing their own tax returns.
Qualified individuals will be provided with free basic income tax return preparation with electronic filling by IRS-certified volunteers.
You can read more about this service here.
Tax Counseling for the Elderly
The Tax Counseling for the Elderly (TCE) is a program that offers free tax help for all taxpayers, particularly those who are 60 years of age and older. This program is specifically for questions about pensions and retirement-related issues unique to seniors.
You can read more about his service here.
Job hunting expenses?
Taxpayers who are looking for a new job that is in the same line of work may be able to deduct some job-hunting expenses on their federal income tax return, even if they don’t get a new job.
You can deduct quite a few things related to job searches such as resume costs, travel expenses and more.
You can read more about these here.
Moving expenses
If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses. These are some of the requirements you need to meet in order to be eligible for this deduction:
- Your move closely relates to the start of work
- You meet the distance test
- You meet the time test
You can read more about this here.
Home Office Deductions
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters and applies to all types of homes.
You can read more about this here.
Do you have any other tax hacks to share? Please feel free to leave them in the comments below!
