Be Aware: Four Deductions That Could Cost You
There are a few deductions that you want to pay attention to this tax year. With the financial climate the way it currently is, every little bit will count.
Deduction Alert #1 - Out of pocket charitable contributions: Many give cash to charity organizations and never remember it when the tax return is filed. Take some time now to think of the times you gave cash to charities and write the occasions down. It would be great to obtain receipts for these contributions if you can. Also please remember if you used your vehicle for charitable purposes record the mileage. You are able to deduct fourteen cents per charitable mile driven.
Deduction Alert #2 – Education Tax Credit Expanded: You will notice a new credit on your 2009 tax return. Its name is the American Opportunity Credit. This credit will grant a rebate up to $2,500 for each qualifying student in their first four years of college. There are income restrictions for receiving the full credit. These restrictions begin at the modified adjusted gross income for individuals of $80,000 and $160,000 for married couples.
Deduction Alert #3 – Energy-saving home improvements: The purchase of biomass fuel stoves, qualifying skylights, windows, outside doors along with high-efficiency furnaces, water heaters and central air conditioners can also qualify for a tax credit.
Deduction Alert #4 – State Taxes: That’s right, state taxes are deductible in 2009. If you had to pay state taxes this past spring you can be granted a deduction.