Wednesday, March 16, 2016

Tax Breaks You Need to Know About

It’s hard to believe, but tax season is upon us. Hopefully, you’re already in the process of sorting through your tax documents and/or of finding a tax professional to assist you. While you’re working on your taxes, however, make sure you don’t overlook some key tax breaks that can really help tax time to go in your favor this year.  

Can’t-Miss Tax Break #1: The Retirement Saver’s Credit

Have you been putting money aside in a retirement account? If so, then you’re entitled to the saver’s credit! If not, by the way, then you really need to get on that; it’s never too early to start planning for retirement.

If you have been a good little saver, however, you can receive a tax credit of up to $1000 if you’re single and up to $2000 if you’re married. There are certain income limits, though, so check with your tax professional before just assuming this credit applies to you.

If it does, however, you’ll save some money and reduce your tax liability at the same time; talk about a winning combo!

Can’t-Miss Tax Break #2: The Moving Expense Deduction

Did you experience the stress of a move in the previous tax year? If so, and if that move was due to a change in your employment, you might just be in luck. Those who relocate for work are typically eligible to write off some of their moving-related costs.

The main catch is that your new job needs to be greater than fifty miles away from your old one, thus necessitating a move. If you can meet that criteria, then you’re generally good to go and can deduct everything from fuel costs to the moving company’s fees. If you have any questions about what is or is not deductible, though, be sure to ask your tax adviser.

Can’t-Miss Tax Break #3: The Earned Income Credit

The Earned Income Credit is a credit that’s extended to those who fall within certain, lower-end tax brackets. You may be eligible for it if you’re 25 years of age or older, are not counted as a dependent for anyone, and have an income that falls within the allowed tax bracket based upon your financial situation.

Your credit can vary from around $500, if you have no children, to as much as $6000 or more if you do. To find out if you’re eligible and, if so, how much of a credit you can enjoy, be sure to talk with your tax professional.

As you can see, there are lots of ways to come out on top when it comes to your taxes this year. However, you’re bound to miss some of the best credits and deductions if you don’t have a knowledgeable professional working on your behalf. Find a tax expert to help you make the most of your taxes this year; you won’t regret it!


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