Tax Deductions You Don’t Want to Forget

The daunting tax season is quickly approaching its deadline, and many are still running around trying to get a hold of the required tax documents they need to process their return. And even if you already had a tax preparer send in your completed return, in the event you forgot to include some of these mentioned deductions, you can always have the preparer amend it. With that, tax attorneys in Michigan want to share with you some helpful information in regards to tax deductions, and want you to be sure you are getting back what you are entitled to for those expenses paid out in 2015.

Michigan tax fraud attorneyTax deductions are used to help alleviate some of the taxable income you may be up against, and can help reduce the amount you owe the IRS, or determine the total you receive back from them. It can become quite tedious to keep track of all the deductions you have, however, in the end they can only help you.

TurboTax, which is a popular tax preparer software used by many, has revealed some deductions many overlook. The most recent report identified that “$1.2 trillion dollar’s worth of tax deductions” were recognized, and there is an estimated amount of 45 million citizens who take the time to itemize their expenses for tax purposes.

Below are some of these over-looked write-offs that Michigan tax legal representatives want you to be sure are always filed should you be entitled to receive them.

  • Student loans interest paid by parents- If a student’s parents paid some or all of their student loan debt, they are eligible to receive a deduction up to $2,500 of student loan interest.
  • Moving expenses for a new job- In the event you moved more than 50 miles for your career, “you can deduct 23 cents per mile of the cost of getting yourself and your household goods” to your new location.
  • Earned Income Tax Credit- Michigan tax lawyers acknowledge this overlooked credit, even though it is not a deduction, that allows tax payers to receive a credit in the event they are considered “low-income.”
  • Charitable Contributions- If you gave back in some way or another, you can claim the amount given, and even 14 cents per mile if your vehicle was used for charity.

Now, while you may have come to the realization that you in fact missed out on some of these mentioned deductions, don’t stress. Schedule an appointment and return back to your preparer to have them correct the appropriate form. Also keep in mind that when you do report these “breaks,” always be sure the amount indicated is a clear reflection of what you spent. Some individuals find themselves being accused of tax evasion, where they over emphasized the amounts listed in the deductions, or added an expense that never even existed.

With this useful information in mind, you can now determine whether you need to amend your filed taxes, or tax attorneys encourage you to dig up some documentation proving you are eligible to receive these deductions.