Here are three mistakes you should avoid making on your income tax:
Incorrect Filing Status
People often believe that they have to be married a certain amount of time before they can file jointly. However, it’s your marital status as of Dec. 31st of the tax year that determines your status. Others believe that it’s somehow advantageous to file separately or as single taxpayers. The truth is, as a married couple, there are many more credits and deductions available if you file joint or head of household.
Not Claiming College-Age Dependents
Many parents incorrectly believe that if their child is going to college and working that they can no longer claim the exemption. However, as long as the child has been enrolled 5 months during the year, and is age 23 or younger, you can still claim them as a dependent regardless of how much money they make. Parents must be able to prove that they provide half of the child’s support for the year and that the child does not qualify to file a joint tax return.
Failing to Deduct Sales Taxes on Major Purchases
Buy a car this year? A boat? Major home renovation, or any other large purchase? If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. To figure the amount of optional general sales tax you are eligible to claim, go to IRS.gov and use the Sales Tax Deduction Calculator to automatically figure the amount of state and local sales tax you can claim.
If you need assistance filing your taxes or if you have a tax issue you want to tackle, contact us to schedule a free consultation. Call us at 888-727-8796 or email info@irsmedic.com.
