A few tax breaks you may not know about
AMARILLO, TEXAS -- It's that time of year when everybody starts thinking taxes. And many of you may be dreading all the work and headache that goes with filing your taxes. It's no secret that tax forms can be complicated, but there are also tax credits that are yours to claim.
Below is a list of some of those credits, and you might be surprised how many tax credits you can file for under credits and deductions.
Charitable donations
Most cash donations made to charity in the tax year can be claimed as an itemized deduction on your tax return. But you can also claim non-cash contributions as well. If you've donated material goods or services, be sure that you have a receipt from the charity stating the value of the goods or services you donated. You can claim that value as a charitable donation.
Child Care Credit
This is one that I took advantage of last year and will again this year, and with the price of childcare you need to save every penny you can. If you pay for child care regularly while you are at work, you may be eligible for a tax credit. The amount of care covered can be up to $6,000 for the care of two or more children. But be sure you have a record of payment, receipts, duplicate check copies things like that. If you pay in cash it may be harder to keep a traceable record of the payment, while making it difficult to claim the amount on your tax return.
Home Energy Efficiency Improvements
Conserving energy and going green is all the rage, and it turns out it can not only help the environment but it can also help your pocketbook. If you went with any energy efficient options when making home improvements, you can claim 30% of the cost, up to $1,500. Home improvement items that fall under that list include energy-efficient windows, insulations, doors, roofs, heating and cooling equipment in existing homes.
Residential Renewable Energy Tax Credits
This one is another green tax break that can help your pocketbook. This break is for renewable energy additions made to your home This one is another green tax break that can help your pocketbook. The Department of Energy includes: solar energy systems, which includes solar water heating and solar electric systems, small wind systems, along with many others. If you look at the bottom line of how much money these systems can save you throughout the year combined with the 30% tax credit, going green is beginning to look even greener.
Automobile Tax Credits
Your car can also help put more green in your wallet, that is if you purchased a hybrid gas-electric or alternative fuel vehicle before 2010 came to an end. Amounts vary based on what type of vehicle you purchased.
Relocating for Work
Who knew that relocating for work could pay! Whether its your first job, a new job, or relocation with your current employer, you can recover some of your relocation expenses. However, like all the other credits there are some requirements. The first involves the distance, from your new work location to your former home. It has to be at least 50 miles longer than your previous commute. The second, is just proving that you actually moved for the job, you have to be employed for at least 39 weeks out of the 12 months immediately following your move. You don't have to actually be employed with the same company, just in the same general area.
Those are just some of the tax credits available that if you are like me didn't know were there. So get those receipts and start adding up the numbers. You might be able to get a bigger refund than you thought. Click here for more information about the tax credits that are available.
