Taxes go up and taxes go down. But that doesn’t mean you should pay a penny more than you owe.
Don’t overlook the top 10 IRS tax breaks and deductions that you’re missing
(Please check with the IRS or your accountant for specific rules.)
Relocation Expense for Your First Job.
- Your move must relate closely to the start of work.
- Your move must take you at least 50 miles from the previous residence.
- You must work at your job for at least 39 weeks after the move.
Job-Hunting Expenses
- Transportation, up to 54 cents a mile if you drive your own car, plus parking and tolls; or cab fares.
- Hotel and food expenses if you must spend a night away from home.
- Employment agency fees
- Costs incurred printing resumes, business cards, advertising, job site fees, postage
The American Opportunity Credit
- This credit allows you to take full credit for the first $2,000 spent on qualifying college expenses and 25% of the next $2,000. It is available to families whose modified adjusted gross income is $80,000/yr or less.
Childcare Credit of 20-35% of childcare costs
- A qualifying child must be 12 or younger at the time of care.
- The care must be provided so you or your spouse could work or look for work.
Mortgage Deduction
- When you buy a house, you may deduct the points paid to get your mortgage.
- When you refinance, you may deduct the points on the new loan over the life of that loan.
Interest on Home-Improvement Loan
The IRS considers the interest on a home-improvement loan fully deductible, up to $100,000.
Property taxes
- Deductible personal property taxes are those based only on the value of personal property.
- The tax must be charged to you on a yearly basis, even if it’s collected more—or less than once a year.
Residential energy-efficient tax credit:
- If you made efforts in 2015 to make your home more energy efficient by installing equipment like storm doors, energy-efficient windows, asphalt or metal roofs, insulation, air-conditioning, and heating systems, the IRS wants to give you a tax credit of up to $500.
Renewable-energy tax credit
- If you’ve installed equipment that uses renewable energy, you may be eligible for the Renewable Energy Efficiency Property Credit for up to a 30% of the cost.
First-Time Homebuyer
- First-time home buyers may withdraw up to $10,000 from traditional and Roth IRAs penalty-free to apply to purchase.
FILING NOTES
The deadline for filing your 2016 return is April 18th since the 15th falls on a Saturday.
Your 2016 IRS may be delayed until at least Feb 15 if you are claiming the Earned Income Tax Credit or the Additional Child Tax Credit.
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