Filing taxes isn’t the most enjoyable task a lot of people would choose to do. But it doesn’t have to be entirely dreadful.
If you know what to report on your tax return correctly, and what to look for, your annual check-in with the IRS could end up surprisingly beneficial.
Tax deductions are probably one of the most popular incentives for filing personal tax returns, but the majority of us go for the most accessible claims. With a closer look, there could be so much more you’re qualified to deduct. Here are some of the most overlooked claims by taxpayers.
Educational Tax Claim
With the Lifetime Learning Credit, you can eliminate up to $2,000 from your tax bill just from being enrolled in an eligible vocational or postsecondary schools or accredited college. There’s also no limit for how many years you can claim the deduction.
If you’re already putting money away in a retirement account or a workplace plan such as a 401K, you could be eligible for the Retirement Saver’s Contribution Credit. With this claim, you get back up to 50% of the first $2,000 you’ve contributed to the account - that $1,000 off your tax liability.
Home Energy Efficiency
You’ll most likely want to check with your local tax professional about this claim because it’s one of those that Congress has to renew every so often - in some instances, it might not be available. But if it is, you could get the Nonbusiness Energy Property Credit which slashes up to $500 of your taxes for qualifying energy-efficient improvements made to your home.
You already know that you can deduct taxes from contributions given to a charitable organization. But did you know you could also deduct from volunteering? You won’t be able to claim the hours, but if you spent money on travel, lodging, or supplies to volunteer, you could write off those expenses - be sure to have receipts available.
Experts estimate that one in five tax filers won’t claim the Earned Income Tax Credit just because the public understands it as a tax break for low incomes. However you choose to see it, you can’t ignore the benefits of a $6,000 tax deduction for a family of five with an income less than $53,000. Any excess goes directly to your tax refund.
Everyone’s tax situation is unique, so please speak with a tax professional or CPA for a complete range of deductions that are available to you. And e-file IRS Form 4868 with ExpressExtension.com to get an automatic 6-month extension to file your personal tax return. The e-filing process is accurate and secure; you can transmit and get approved within minutes.
Our helpful, U.S. - based support team can assist you with e-filing directly to the IRS or answer any questions you may have - call us at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us anytime with support@ExpressExtension.com.