Last-minute filer? Risky!
Tuesday, March 15th, 2011
Studies have shown that people who wait until the last minute to file their tax returns make more errors and miss tax breaks. As you are gathering your records, think back through last year’s events and transactions. Make a list and ask your accountant about them. You may be surprised to find out that they have an income tax impact.
Kiplinger magazine publishes its list of the most-overlooked tax breaks:
- State sales taxes,
- Reinvested dividends,
- Out-of-pocket charitable contributions,
- Student loan interest paid by parents,
- Job-hunting costs,
- Moving expenses,
- Military reservists’ travel expenses,
- Health insurance deduction to reduce self-employment tax,
- Child care credit,
- Estate tax on income in respect of a decedent,
- State tax paid last year,
- Refinancing points,
- Jury pay turned over to your employer,
- American Opportunity credit,
- Making Work Pay credit,
- Credit for energy-saving home improvements,
- Bonus depreciation on business asset purchases,
- Stock received in a demutualization,
- Home buyer credit.
Call us with questions about any of these items, or any other events in your life in 2010. We recommend that you pull together your information and questions and get them to us now so we will have time to do our best work for you.