Not that I am in anyway ready to do my tax return for last year, I figured some of you may be ready to get it over and done with. That’s why I thought it would be helpful to post 4 Tips For Filing Your 2013 Tax Return. After all, it is one of our goals to help save your time & sanity.
While I won’t go into specifics, the implementation of the Affordable Care Act (Obamacare) and the American Reinvestment and Recovery Act stimulus package winding down, mean a lot of changes in the tax code for 2013.
That being said, here are 4 Things To Remember When Filing Your 2013 Tax Return.
Itemizing deductions
The rules and amounts for itemizing deductions have changed and it is important to calculate your return using both the standard deduction and by itemizing it and using the method that is most favorable to you. It can be a lot of extra work to itemize, but if you have significant out of pocket medical expenses, own your own home or make sizable donations to charity, it can be worth it.
Check for credits and then check again
There is a bewildering array of tax credits and they change from year to year. This year tax credits for plug in electric vehicles is expired but there are credits available for child care expenses, education credits, energy efficiency credits for home improvements and more.
Employment and Moving Expenses
Under many circumstances, expenses incurred while searching for a job (resume writing services, travel expenses if the job requires relocation) or moving to a new home can be deducted from your income.
Home sold with undeducted points
If you itemize deductions and have unpaid points when you sell the home, under certain circumstances, you can deduct the fees from your income when you sell the home. Home ownership is a gold mine of tax deductions with significant tax benefits if done correctly.
The tax code grows more complex every year and while preparing a simple return is straight forward and it is easy to prepare a return that will pass an audit, paying the smallest amount possible requires good record keeping, attention to detail and knowledge of the laws. Tax preparation software is good and a reputable return preparer is money well spent, but a willingness to commit time to reading on changes means that you can save even that money. If you do pay a preparer and itemize deductions, keep in mind that the fee you pay to have it prepared is also a deductable expense!
***Disclosure: I am NOT a tax expert. These tips were provided to me by someone who has knowledge about filing taxes and I wanted to share them with you. If you have any questions or concerns regarding filing your taxes, please consult an expert and/or visit the IRS website.
