Last-Minute Tax Savings
If you're still working on your
taxes and looking for some last minute deductions to reduce your tax
bill, here are a few to consider:
State taxes: If you paid state
taxes for the year 2008 when you filed last year, you can deduct that
amount from your Federal return.
Property tax: Until recently, only
those taxpayers who itemize deductions (Schedule A) could deduct their
property tax. Now, even if you take the standard deduction, you can
deduct some or all of the property tax you paid in 2009. There's a
limit, however. You can deduct the amount that is lower: the taxes you
paid, or up to $500 for single or $1,000 for filing jointly.
Charitable deductions: If you tend to save all your receipts, it
could be worth your while to look for those related to charity. You can
deduct your expenses for quite a number of things: the cost of
ingredients for the cakes and pies you baked, mileage at 14 cents per
mile, postage for mailings, and more.
Home improvements: If you made energy-saving improvements to your
home, you can deduct part of the cost. Windows, water heaters, doors and
more are included. (Unfortunately this doesn't apply to everyday
appliances such as dishwashers and refrigerators.) Each item has a
different limit on how much can be deducted. Go online to
www.energystar.gov and scroll down to Tax Credits for Energy Efficiency.
Read the particulars on your appliance or energy-saving product. You'll
need IRS Form 5695 as well as your receipts and the Manufacturer's
Certification Statement to send in with your Form 1040.
Home
purchase: If you bought your first home in 2009 before Nov. 7, you could
be eligible for a credit of up to $8,000. If you are a repeat buyer who
purchased a home after Nov. 7, 2009, and who will close on a house by
July 1, you could be eligible for a credit up $6,500 if you've lived in
your home for at least five years. This government program has changed
since it was first started in 2008 with a $7,500 interest-free loan to
first-time homebuyers. If you've bought a home at during that time,
check to see if you qualify.
David Uffington regrets that he
cannot personally answer reader questions, but will incorporate them
into his column whenever possible. Write to him in care of King Features
Weekly Service, P.O. Box 536475, Orlando, FL 32853-6475, or send e-mail
to columnreply@gmail.com.
(c) 2010 King Features Synd., Inc.
