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!