Top 5 Overlooked Tax Deductions
Copyright 2006 Kristine McKinley
How many times have you done your taxes, and a week or a month later realized you forgot a deduction?
The tax law is very complicated, so it's easy to miss a deduction or two.
In my experience, these are the top 5 missed deductions.
1. Non-Cash Donations
Did you clean out your closets this year?
Chances are you donated those items to Goodwill or a similar non-profit organization.
The value of donated items (clothing, furniture, etc.) is deductible.
You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.
2.
Points on Refinancing
With interest rates so low the past few years, there have been a record-number of houses refinanced.
If you refinanced, you may have paid points to get a lower interest rate.
These points are deductible over the life of the new loan.
In addition, if you incurred points on an old refinancing, any unamortized points are deductible in the year of the new refinancing.
3. Educator Expenses
If you're a qualified educator (teacher, aide, instructor or principal), you can deduct up to $250 for materials you bought for the classroom.
Qualified expenses include books, supplies, and computer equipment.
This law is set to expire in 2006, so take advantage of it now if you qualify.
4. Investment and Tax Expenses
Expenses for tax planning and investment advice are deductible as a miscellaneous deduction, subject to the 2% Adjusted Gross Income (AGI) limitation.
Expenses that qualify include tax preparation fees, safe deposit box fees, fees paid to investment advisors, legal and accounting fees related to tax planning, broker and IRA fees paid directly, investment publications, and more.
Many people assume that they won't have enough miscellaneous expenses to exceed the 2% AGI floor, but all of these expenses combined can be substantial, especially if you have unreimbursed employee expenses to add to these expenses.
5.
College Savings or 529 Plan Contributions
Depending on which state you live in, contributions to 529 college savings plans may be deductible on your state income tax return.
Because this deduction is only available on the state return (no deduction available on your federal return for 529 contributions), many people fail to include this deduction on their state tax return.
.
Kristine offers financial and tax planning on an hourly, fee-only basis. To sign up for free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com .
Ascentis Announces Partnership with RSM McGladrey
Bellevue, Wash. (ContentDesk) July 27, 2005 -? Microsoft Gold Certified Partners Ascentis and RSM McGladrey work together to strengthen mid-sized companies businesses through the integration of Microsoft Business Solutions ? Great Plains and Solomon with HROffice."We are excited to be able to offer automated HR [HROffice to our clients," says Tom Burtner, Director, IT Consulting at RSM McGladrey ? Mid-Atlantic. "HROffice is truly a program that can pay for itself by providing workflow efficiencies. Its integration with Microsoft Business Solutions - Solomon and Great Plains, external payroll solutions, and insurance carriers is unparalleled. HROffice will help us retain current clients who require an HR solution as well as obtain new ones."HROffice is a human resources management system (HRMS) that builds on the latest Microsoft technologies and integrates with the tools HR departments already use.
The software integrates with Microsoft Business Solutions ? Great Plains, Solomon,...
Ascentis Announces Partnership with RSM McGladrey
Tax help > Ascentis Announces Partnership with RSM McGladrey
Legislation Requires All Tax Professionals to be Enrolled Under IRS Regulations
The State of Florida has no standards or laws regulating the conduct or standards of tax professionals. Anyone or his idiot-savant brother, may open up a tax office and receive compensation for preparing tax returns. In fact, according to Marvin Diamond
of Diamond Professional Tax Preparers in Kissimmee, Florida, people have done just that. Diamond complains of companies opening up for just a few weeks during tax season, taking people's money, then closing up and disappearing - while customers are left without even getting their tax returns.
Senator Jeff Bingham's legislation intends to stop those kinds of consumer problems - and worse ones.Once S.
832 passes, there will be thousands of tax professionals with long-term experience, excellent professional track records, but no credentials, who will be forced out of business. They won't be able to become CPAs or attorneys in time for next tax season. Both those professions tend to require college degrees, and intensive...
Legislation Requires All Tax Professionals to be Enrolled Under IRS Regulations
Tax help > Legislation Requires All Tax Professionals to be Enrolled Under IRS Regulations
Tarey Wolf, Award-Winning Singer, Songwriter, to Appear at Catherine A. Hickman Theater February 8, 2004 at 2:00 P.M. with Donna Klein, and Friends
Tampa, FL (ContentDesk) February 4, 2004 -- Since strumming her first $18 Silvertone guitar at 14, Tarey Wolf has continued to weave a rich poetic tapestry of self-made songs. "The first song I ever learned was P.F. Sloan's "Eve of Destruction" which was cut by Barry McGuire who is a cousin of mine. I always preferred to write my own material, because it was a way to express all that teenage angst in a constructive way... It is still my favorite thing to do, and for me success is looking out into a smiling audience and knowing they hear me, that in speaking for myself I speak for them..." Tarey has shared the stage with many noteworthy artists including Melissa Etheridge, Teresa Trull, Lisa Nemzo, Sandy Ross, Freebo.See Tarey at:Keeping Company? with Donna KleinSunday, February 8, 2004 @ 2:00 pm Catherine A.
Hickman Theater, 5501 27th Ave. S., Gulfport, FLAdmission: $10.00 tax includedTickets available in advance through Donna Klein or the City of Gulfport, FLContact: Marlene...
Tarey Wolf, Award-Winning Singer, Songwriter, to Appear at Catherine A. Hickman Theater February 8, 2004 at 2:00 P.M. with Donna Klein, and Friends
Tax help > Tarey Wolf, Award-Winning Singer, Songwriter, to Appear at Catherine A. Hickman Theater February 8, 2004 at 2:00 P.M. with Donna Klein, and Friends
Offshore Banking
An offshore bank is a bank located outside the country of residence of the depositor in a low- or no- tax jurisdiction. It provides financial and legal advantages like privacy, reduced legal restrictions, and protection against local political or financial instability. Offshore banking has increased rapidly all over the world since mid-1960s because of the growth and liquidity of Eurocurrency markets.
The full spectrum of financial services from offshore banks include deposit taking, credit, money transmissions, provision of foreign exchange, letters of credit and trade finance, investment custody, investment management, fund management, trustee services, and corporate administration.
Offshore banks provide access to politically and economically stable jurisdictions that may be an advantage for those resident in areas where there is a risk of expropriation or where there is corruption within the banking system.
Many offshore banks...
Offshore Banking
Tax help > Offshore Banking
Tax Certificate Investors Make More Money If They Know "The Basics" of Property Descriptions!
Tax Certificate Investors Make More Money If They Know
"The Basics" of Property Descriptions!
There are 3 basic systems of describing real property. They range from the time the USA was founded? up to the stream-lined present day systems. Knowing them will let you into the "exclusive code" of the tax assessors and collectors. They set the rules for ALL Tax Certificate and Deed auctions.
In colonial days they used obvious physical features (hills, rocks, rivers, forest, etc.) and a system called "Metes and Bounds". Just the Metes and Bounds System (A description of land by property lines ? with terminal points and angles) is still used by all states at present.
"Metes and Bounds" requires extensive study and serious knowledge of land and geography.
At present, the "Block and Land" system is preferred and very easy to understand! The major plot of land is simply divided into smaller lots and blocks that show the streets with their individual...
Tax help > Tax Certificate Investors Make More Money If They Know "The Basics" of Property Descriptions!