Tax Credits and Deductions You Should Know About




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Tax season is here again. Are you getting all the credits and deductions you qualify for? Here are some that you may not have known about:

Earned Income Tax Credit

  • Must be between 25 and 65 years of age
  • Have little or no investment income
  • Have a social security number
  • Have earned income of at least a dollar
  • Can’t file as married filing separately
  • Can’t file 2555 or 2555 ez

Lifetime Learning Credit

  • Must have paid tuition and fee’s to a post-secondary school
  • Modified adjusted gross income of less than $55,000 ($110,000 if filing jointly)
  • Cannot be claimed as a dependant or filing as married filing separately
  • Cannot claim Hope Scholarship Credit for same student

Looking for a New Job

  • Tax deductible up to 2% of your gross income
  • Must be looking for a job in your same occupation
  • Can deduct employment and outplacement agency fees 
  • Can deduct cost of resumes
  • Cannot deduct expenses if there is a gap between last employment and start of job search
  • Cannot deduct expenses if you are a first time job seeker

Credit for the Elderly or Disabled

  • Must be at least 65 years of age or;
  • Retired, on permanent, total disability, and received taxable disability
  • Adjusted gross income must be under limit

Savers Credit

  • Have an adjusted gross income under $30,000 ($45,000 for head of household and  $60,000 if married filing separately)
  • Must be saving for retirement

Mortgage Interest Credit

  • Have been issued a Mortgage Credit Certificate by qualified local or state government
  • Have a new mortgage
  • Mortgage is for main home

Whether you are doing your own taxes or having someone else do them for you, make sure that you get all the tax breaks you qualify for. If someone is doing them for you, look over them to verify that nothing was missed.

 

By: Alecia Stanton







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