10 Tax Tips For 2010

Want to learn 10 Tax Tips For 2010? Each year there are hundreds of tax changes. To get your maximum refund, it is important to make sure that you are taking advantage of all of the credits available. You can also visit the IRS website for detailed tax preparation information and even more tax tips.

1. Charitable Donations - Each year taxpayers miss out on refund money by not claiming charitable donations. Keep track of all cash donations to charities. For donated items, use the software program ItsDeductable to determine the value of all items donated. This is a free program offered by Turbo Tax and can be used throughout the year. Once information is inputted, it can be directly imported into Turbo Tax software or printed out to take to your tax preparer.

2. Home Buyer's Tax Credit - If you are filing taxes for a first time home buyer credit, you must mail in your taxes. It cannot be filed electronically. To find out more about the home buyer tax credit, visit the IRS website.

3. If you are not going to make the tax filing deadline of April 15, file an extension.

4. Do not get an instant tax refund. While having your money right away is appealing, it is very costly. Rates may be as much as the equivalent of 200% APR.

5. Claim each person that is a dependant including children 17 years or younger living in your home and parents or other family members that live with you and rely on your income or care.

6. Don't forget to deduct job hunting expenses or moving expenses if you move for a job. These expenses are tax deductible.

7. If you are a military reservist, your travel expenses are tax deductible if you have to travel over 100 miles and/or stay overnight for training.

8. Childcare is tax deductible. If your child attends a licensed daycare you may receive an end of year statement for your costs that includes the EIN number. If your expenses are for a childcare provider who is an individual and not a daycare, you will need her social security number to report expenses.

9. If you have made energy efficient improvements to your home, those expenses are tax deductible up to $1500.

10. Check all numbers carefully. The more numbers that you include, the more likely there is to be a data entry error. If you are using direct deposit for your refund, it is a good idea to have all of the refund deposited into one account. Check the bank account numbers carefully. If you want the refund divided into more than one account, complete the transfers yourself.

Reference:

IRS Website