Top 5 Overlooked Tax Deductions in Fort Lauderdale
While most people are looking to save money on gifts this holiday season, it is never too early to start saving money for tax season. More people in Fort Lauderdale are discovering that maximizing on deductions makes cents–as in dollars and cents. But there are many tax deductions that are often overlooked. Whether it is poor record keeping, procrastination or simply not knowing what is deductible, too many people are giving away far too much of their hard-earned money to Uncle Sam. Here are some common deductions you may have overlooked.
- Maximize Your Charitable Deductions: It is no secret that donating to charity is an easy tax deductions. Plenty of people give to worthy causes. However, many people overlook some of the less obvious charitable donations. Contributions to nonprofit groups, government organizations, and religious organizations are also tax deductible. For example, just giving to the local library or a school counts as a donation to a government organization. Do not forget about any travel expenses. You can deduct mileage when driving to a homeless shelter or performing transportation service for a charity. The standard deduction rate is 14 cents per mile.
- Selling Your Home? Add Home Improvements to Your Basis:Individual homeowners that have sold their property at a gain can exclude $250,000 of their gain. Married couples can exclude $500,000. To be eligible, a homeowner must have spent at least two of the last five years using the property as their primary residence.
- Employment Hunting Expenses: Nobody wants to be unemployed. But you can take advantage of the money spent job hunting by using it as a deductible. These deductions include visiting an employment agency, costs spent on mailing and constructing resumes along with travel expenses to meet with prospective employers. It is important to keep accurate records to prove your mileage was used to look for work. The standard deduction rate is 54 cents per mile.
- IRA and Retirement Contributions: Each time a person contributes to their retirement account, they are essentially paying themselves. Even if you have not made a contribution, you can still take a lump sum from your paycheck to catch up. For those who are procrastinators, it is important to do it before December 31.
- State Sales Taxes:Many people in Fort Lauderdale often overlook writing off their sales taxes. You can add the sales tax used to pay for a car or boat to the amount shown in IRS tables. The IRS provides a calculator to help determine your deduction.
Ask Your Tax Preparer
Most people prefer to file their tax returns as quickly as possible. But sometimes, it is good to exercise patience and ask plenty of questions. Whether you go to an accountant or visit a local H&R Block, a licensed tax preparer should be able to answer any of your questions regarding tax deductions.
Tax problems can happen to even the most responsible people. Whether you owe back taxes or have received a letter of notification from the IRS regarding an audit, it is important to seek representation from an experienced legal professional to resolve your issues. To learn more, contact the Fort Lauderdale tax lawyer at Zuckerman Law, LLC and schedule a consultation today to discuss your case.