Posted by Madison on March 24, 2010
I love tax deductions. I know, a little over the top, but since I love taxes, it’s only natural that I love finding tax credits and tax deductions for people.
With the tax deadline just around the corner, here’s a summary of all the tax deductions you’ll want to review to see if you are eligible.
If you’re using the interview mode on TurboTax, you should make sure the questions you answered gave you credit for all of the deductions you qualify for.
Tax Deductions You Don’t Want to Miss
- Tax Credit for Existing Homeowners. If you lived in your old house for five years, and recently bought a new house, you may be able to claim this tax credit. (It was previously limited to first time home buyers only.)
- New Car Tax Credit. It’s actually a deduction, but somehow car dealers advertised it as a credit. Either way, if you bought a new car, this one’s for you!
- Property Tax Deduction. People who itemized have always gotten to take a deduction for their property taxes. The good news is that people who take the standard deduction can claim it too. Determine when you should pay your property taxes to take full advantage of the deduction.
- Tax Deductions for Self Employed. If you run your own business, be sure that you’re taking all the tax deductions you’re entitled to, including the Self Employed Health Insurance Deduction.
- Unemployed Tax Deductions. Multiple tax deductions related to unemployment, job searching, or moving for a new job are available for those who faced unemployment last year.
- Mileage Deduction. If you use your personal car for work, you can deduct the mileage on your Schedule A (above 2% of adjusted gross income).
- Solar Panel Tax Credit. Multiple energy efficient tax credits exist if you installed solar panels or other energy efficient upgrades.
- American Opportunity Tax Credit. The tuition tax credit just got a whole lot better for those of you attending college. The new credit expands on the old Hope Credit.
- Earned Income Tax Credit. The EITC will be available for more people based on the recession last year.
- Saver’s Credit for Retirement Contributions. An extra perk for saving for retirement! For those in the lower tax brackets, you can get a credit up to 50% of your retirement contributions.
- Midwestern Disaster Area Tax Credits. If you are located in Midwestern areas that faced disasters last year, you’ll be able to expand on some of the other tax credits you are eligible for.
- Making Work Pay Tax Credit. Many people will see a $400 tax credit ($800 for couples) on your return this year. You can claim the credit on Schedule M.
- Haiti Tax Deduction. You can claim a 2009 tax deduction for donations made to the Haiti relief effort in early 2010.
If you already filed, and missed any of these, be sure to file an amended tax return to claim all the money you have coming to you.
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I have my appointment with my accountant on Friday. This is the first year I have used an accountant, but since my small business has taken off, I thought that I better use one this year.
i did a post on tax deductions and i think i will update it with a link to this site. the post was lacking enough examples so this post will solve that problem
Just a comment about amending, but I believe that if you have already filed, but it is before April 15, you just refile, no need for an amended return. This seems to stick in my mind, but I am not 100% certain.
We’re hoping to see some of our money come back from one of the college tax credits…
You mentioned the Savers tax credit. It is such a good deal if you qualify. Great read!
Some of these are really useful… a lot of taxpayers overlook things like Haiti donations and the mileage deduction.