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. We already covered the first five in a previous post: Ten Frequently-missed Tax Deductions for Arizona Taxpayers (Part 1 of 2). The next five are:
- Non-cash contributions to charities: Most people are aware that they can deduct cash contributions to charities and non-profits. But non-cash contributions are tax deductible as well. These include mileage driven to and from charitable events, retail value of donated items, and property (with some restrictions).
- Premiums for health insurance: This is available if you spend more than 7.5% of your adjusted gross income on healthcare and related medical expenses, including prescriptions, insurance, travel, and contributions to Health Savings Accounts (HSAs). For these expenditures, you can deduct the amount over and above the 7.5%.
- Hybrid Vehicle Deductions: The government would like to encourage Americans to “go green” by offering limited tax benefits on certain models of hybrid cars.
- Education: Those continuing their education after high school should look into the Hope Credit, the Lifetime Learning Credit, Tuition and Fees Deductions, and Student Loan Interest Deductions.
- Retirement Savings: In addition to tax-free contributions to employer-sponsored 401K plans and Traditional IRAS, qualified individuals can also get a Saver’s Credit for contributing toward their own retirement.
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.