Even if you use an expert to help prepare your taxes for the IRS, Arizonans should still keep an eye out for the top ten tax deductions and credits many people fail to claim. The first five are:
- State and local income tax: Forty-three states allow residents to deduct state and local income taxes paid on necessities like a home purchase. Because there are vast differences from state to state regarding these deductions, it is a good idea to consult with a tax professional before claiming any deductions.
- Work safety equipment and apparel: If you are expected to provide your own safety equipment at work, you can itemize the cost for these items as a deduction.
- Savings bond interest: Individuals who meet IRS income guidelines are not taxed on savings bonds used to pay college tuition or those placed in a Covedell or 529 college savings plan. Also, Series EE and I bond interest gains are not taxable until the bonds are cashed in or have matured.
- Caring for children: Child care tax credits include those for adoption, providing foster care or hosting an exchange student.
- Tax preparation fees and financial planning fees: These include money spent on tax preparation books and tax prep software as well as a visit to a live tax preparer. Fees for financial planning (but NOT commissions) are also deductible. Both fall under itemized deductions.
An understanding of the deductions and credits available to you can really help – legally – minimize your tax bill come April 15th. But bear in mind that many tax deductions and credits have complicated requirements and a qualified tax professional should be consulted.
At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming. Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.