It’s Almost Tax Time- Are You Ready?
Here we are – the first week of February, and It’s Almost Tax Time-Are your Ready?
For many of us, organizing our expenses, and filling out tax forms is a time consuming and frustrating task. That may be why 25% of Americans wait until the last minute to prepare their returns! The downside of this procrastination is you may miss the potential tax benefits you deserve. The earlier you prepare your return, the more time you have to determine which deductions you may qualify for!
These deductions below may or may not apply to you personally- I am a real estate professional, not a tax advisor, and I want to share common deductions with you so you can receive what may be owed to you. There are many very good tax advisors in your local area- google “local tax advisor” and see how quickly the search populates.
Here are a a few of the most common deductions people make on their federal tax returns:
Sales tax- write off the sales tax for purchases in 2016– materials for your home renovation and car purchases are 2 biggies.
State and Local property taxes– You may be able to deduct these if you are NOT subject to the AMT (alternative minimum tax)
Home Mortgage interest– write off the interest paid this year- up to 1 million, as long as it is your primary or secondary home.
Interest on Home Equity loans- You may be able to deduct the interest paid on your HELOC up to $100,000.00, as long as you are not subject to AMT.
Home Buying Expenses- You may be able to write off loan origination fees, prorated interest on a new loan or prorated property taxes, as long as you are not subject to AMT.
Child Care– if you pay a babysitter to watch your child(ren) while you work, look for work, or attend classes, you may be able to qualify for a refundable tax credit.
College Expenses– If you’re paying your child’s college education, you may choose from these three deductions-
American Opportunities Tax credit
Tuition and fees
Lifetime Learning Credit
You can’t take all three in one year- see which one works best for you.
Medical Expenses- you may be able to deduct out of pocket medical expenses
Self- Employment- If you’re self- employed, you are able to claim business expenses, retirement plan contributions, 50% self employment taxes, your workspace, car usage, and health insurance premiums for you, your spouse, and any dependents.
Here are a few websites for more tax information for you.
https://www.taxact.com/reference/library_index.asp
https://irs.treasury.gov/freetaxprep/
http://www.aarp.org/money/taxes/aarp_taxaide/
It’s Almost Tax Time- Are You Ready?
Here are 5 Tasks To Do Now!
Make a List and Gather your documents-
Download the latest forms and publications from www.irs.gov , or have them mailed to you.
Start filling in the blanks now- create at least an hour this week and next to get a “head start” NOW, and don’t procrastinate until March 1st!
Nail down the specifics- Get your dependents SS#’s on file
Contribute to your IRA- You are able to contribute to a traditional or Roth IRA until April 15, 2017. Check the IRS website to see if you are eligible to deduct your contribution from this years taxes.
It’s Almost Tax Time- Are You Ready?
Remember, this is a Very Stressful time for many people!
Tax rules change often, and you may be able to qualify for many other deductions this year. I strongly recommend consulting with a quality local accountant or tax professional this week! Be prepared with pertinent questions when you meet them.
How good will it feel when you have your federal and state taxes Completed on or before March 31st?
If you or anyone you know have any questions about your potential real estate tax deductions, I’ll be happy to guide you in the right direction- 970-219-4859
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