You probably keep track of your itemized deductions including mortgage interest and charitable deductions . You can get a credit for child care expenses, or enjoy any of a number of common tax breaks.
The tax code is complex, and there is necessarily something that can reduce your tax bill. What could you miss
Here are some little known tips to save taxes :?
Contribute more to your retirement plan if you have 50 years or more
Once you reach 50, you may be allowed to contribute more to your retirement plan. He called a contribution "catch up".
For example, most people can contribute $ 5.500 per year (2013) in their traditional IRA or Roth IRA. If you have reached your 50th anniversary of the end of the year, however, you can contribute up to $ 6,500 per year.
If you are a high-income taxpayer, your maximum contribution to a pension plan can be reduced.
Remodeling expenses that qualify as medical expenses
is more difficult to deduct medical expenses now that you can not deduct them in the extent that they exceed 10% of your adjusted gross income. You may get there faster than you think, though, if you make major changes to your home for the good of yourself, your spouse or a dependent with special medical needs.
For example, the IRS has allowed deductions for adding pools or wheelchair ramps, widening doors, changing inputs, and installation of lifts when there is a goal medical.
If the improvement increases the value of your home, you can deduct the cost exceeds the amount of the value it adds to your home.
Service animals expenses
You can not deduct expenses for your pet, no matter how much they cost. If you have a service animal, however, the initial cost and the cost of care, training and maintenance are deductible as medical expenses.
Not all service animals are just for visually impaired or deaf people. You can also have a service animal for mental illness, diabetes, seizures, autism, and other conditions.
The foreign taxes paid
You might be able to take a credit or deduction for foreign taxes you paid. You may not even be aware that you paid foreign taxes, however, unless you study your brokerage statements or 1099 forms carefully.
If you have a pool of international investment, for example, it may have paid foreign taxes on your behalf.
changes to tax based mutual fund
When you own shares in a mutual fund, you often pay tax on capital gains because the mutual fund assets sold, even if you sell shares of the fund. You must increase your tax base by the amount of the gain on which you pay taxes.
When you sell the mutual fund investment, make sure you enter the adjusted tax basis, so you do not pay tax on the same income twice.
Lawn and house cleaning
you may be able to deduct part of the cost of lawn maintenance, cleaning, utilities, mortgage interest and other expenses of your home if you use your home for business.
for example, if you are eligible to claim a place in your home as a home office for your business, you can deduct a portion of these expenses as business expenses.
You can not deduct the external costs, such as lawn care, if the expenses relate to your business; For example, if customers come to your home
What is the most unusual deduction that you have taken
Photo credit:.? Chris J. Bartle via photopin cc
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