Don’t forget important income tax return deductions.  The IRS reports the most common overlooked deductions each year.  How many have you over looked in the past when you are getting your files and receipts together to do your tax filing?   We would be happy to do your tax returns.

Some of the more common overlooked deductions are:

1.       Earned Income Tax Credit – 25% of tax payers fail to claim the earned income tax credit according to the IRS.  Even if you are single you may be eligible.  You may be one who missed out on an average of $2,000 unclaimed EIC.  This is a refundable tax credit and not a deduction.

2.       Child Care Credit – is also a credit rather than a deduction and is more important than many deductions in that it reduces your tax bill dollar for dollar.

3.       Charitable Contributions – Don’t forget deductions to Goodwill and other such organizations and don’t forget the small deductions to different organizations also.  You can count your mileage and other out of pocket expenses associated with a charitable contribution. 

4.       Your Income Tax preparation fee its-self is deductible, don’t forget it.

5.       Student Loan Interest paid by Mom and Dad. 

6.       State Sales Tax – if you purchased an automobile, boat or other expensive item, you could be better off deduction the sales tax rather than your state and local income taxes. 

7.       State Tax you paid last spring – If you itemize include this on your itemized deductions.

8.       Moving Expenses – if you are moving more than 50 miles and it is job related don’t forget these deductions.

9.       Jury Duty Pay to Employer – If your employer pays you and then wants the jury duty pay for the coffee fund, you must report that pay but then you can deduct that amount so that you pay taxes on it.

10.   Reinvestment Dividends – These are not deductible but they are a subtraction.  If you have mutual fund dividends automatically reinvested in extra shares, this increases the tax basis in the fund which reduces the amount of taxable gain when you sell the shares.

11.   Refinancing Points – When you buy a house you get to deduct all of your points at one time.  When you refinance you deduct 1/30 (or term of loan) of the points each year over the life of the loan.

12.   Handwritten and self-prepared returns – Many of these are returned for errors which cause delays in your refund and could cause interest and penalties if you owe.   Self-prepared on-line returns sometime have errors and omissions that can cost you hundreds or thousands of dollars.  Some programs are limited to what forms you can use and you generally don’t have state forms included and then do you have a copy of your return if you need it?

At Computerized Income Tax Service we will prepare your taxes, ask you the questions necessary to get all the deductions you deserve.  No appointments necessary and no long lines.