deduction
Income Tax Deduction: Earned Income Credit
According to the IRS, the earned income credit (EIC) is a tax credit for certain people who work and have earned income under $41,646. A tax credit usually means more money in your pocket. It
reduces the amount of tax you owe. The EIC may also give you a refund.
To find out more information about the earned income credit, go to: http://www.irs.gov/pub/irs-pdf/p596.pdf.
TaxCut Software
TaxCut makes it much easier to file your income tax return, and costs less than hiring an accountant.
First, it calculates everything, so you do not have to do any math.
Second, it saves time.
Third, and most important, it makes it more difficult to overlook deductions, credits and tax breaks.
Finally, it includes free eFile for your federal tax return.
TurboTax Software
TurboTax makes it much easier to file your income tax return, and costs less than hiring an accountant.
First, it calculates everything, so you do not have to do any math.
Second, it saves time.
Third, and most important, it makes it more difficult to overlook deductions, credits and tax breaks.
Finally, it includes free eFile for your federal tax return.
Income Tax Deduction: Heloc Interest
Very similar to mortgage interest. Heloc (Home equity line of credit) interest is also to be included in “Itemized Deductions”.
Income Tax Deduction: Mortgage Interest
This is a big one! For most families owning a house, this will be the most important deduction to include in your “Itemized Deductions”.
Income Tax Deduction: Car Taxes
You can deduct the License Fee portion of the DMV’s Vehicle Registration fees under “Itemized Deductions”.
Income Tax Deduction: Property Taxes
You can deduct your property taxes (taxes paid to the county when you own a house) under “Itemized Deductions”.
Income Tax Deduction: Child Credit
If you have children, make sure to take advantage of the Child Credit established by the IRS.
Income Tax Deduction: Donations
Instead of throwing away things you no longer want (but that are still in good shape) in the trash, bring them to a local charitable organization, such as Goodwill.
Upon request, they will give you a receipt. Use it to claim a tax deduction under “Gifts to Charities” in Schedule A of Income Tax Form 1040.
Make a detailed list of what you are giving away, and keep it in a safe place.
It is wise to take pictures of the items, before bringing them to the charitable organization, just in case the IRS decides to audit.
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