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Posted by on Mar 25, 2016 in News | 0 comments

Spread the word: How you could save $1000’s on your tax return

Spread the word: How you could save $1000’s on your tax return

Everyone dreads tax season and for good reason. Almost everyone hates filling out their income tax returns as it can typically lead to us owing money to the Revenue services.

How much more would you enjoy filling out your returns if you discovered some clever loopholes to help you get a tax refund instead? Pay attention – below we’ve outlined some clever tax deductions and credits which you might not have been aware of. And make sure you helps us spread the work. Like, share and tweet this article today to ensure everyone benefits before the April tax filing deadline.

Here are our top tips;

Approximately 20 percent of taxpayers who qualify for the Earned Income Tax Credit fail to include it on their self assessment returns.

The Earned Income Tax Credit was designed for low to moderate income people. The Earned Income Tax Credit can increase taxpayers’ refunds by as much as $6,000. In addition to this credit, there are numerous other tax deductions and credits that can lower a taxpayer’s bill and increase their refund amount. This includes job search expenses, charitable deductions, gambling losses, education credits and state and sales tax deductions.

Most people only think of their children when it comes to dependents; however, if you care for an elderly parent, they may qualify as your dependent. In order to claim them as your dependent, you must pay for more than 50 percent of your parent’s living expenses. Even if your parent does not live with you, you can claim them as a dependent. If you and another sibling split the expenses of caring for an elderly parent, you can both be eligible for the deduction. Use the Form 2120 to help you determine the amount each sibling can deduct from their taxes.

Money and items you donate to charities can be deducted. However, in order to claim these deductions, you must have written proof of your charitable donations.

If you are donating non-cash items, you must list a true value of the items donated. You can use the Salvation Army’s online guide to help you determine the value of each non-cash item.

Additionally, take a photograph of each item you donate. This will serve as further proof to the IRS if you get audited.

If you have not completed your tax returns by the deadline, you can request an extension by filing a Form 4868 with the IRS. The extension is an automatic extension. This extension gives you an additional six months to file your taxes. Usually, taxes are due by April the 15th; however, this year the IRS extended the deadline until Monday, April 18. This means that the extension deadline is also extended until October 17 this year.

If you owe taxes, you must estimate how much money you owe the IRS and include it with form 4864. If you do not pay when you file your extension, you will be responsible for late penalties and interest on the amount of money you owe.

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