April 15th will be here before you know it. If you are like me, you may be dragging your feet on filing your income tax return.
There are many income tax deductions that you may inevitably qualify for, but you do not want to miss them. Make sure that you pay that taxes you owe, but do not pay more taxes than you have to.
In 2009, more than 45 million Americans itemized deductions on their tax returns to the tune of $1.2 trillion dollars of savings and deductions. But, the real question is: how many income tax deductions did we miss?
Did we claim all of the deductions that were owed to us? Or, did we miss a few that could ultimately cost us hundreds of dollars in savings that we could have claimed on our income taxes.
Far too many people overpay on their income taxes and do not claim all of the income tax deductions that their family qualifies for when filing your income tax return. Do not miss important income tax deductions that you can claim. Here are five important income tax deductions that you shouldn’t forget to claim if you are eligible.
Five Income Tax Deductions You Can’t Forget About
1. Mortgage Interest.
The mortgage interest deduction is one of the most important income tax deductions and one that most people consider when they file their taxes. It is often the one deduction that will move you from the standard deduction camp into itemizing your income tax return.
You are allowed to deduct the amount of money you paid throughout the year in mortgage interest. You can also deduct the amount of interest that you paid on home equity loans and home improvement loans.
2. Charitable Gifts.
You can reduce the amount of taxes you owe through charitable giving if you itemize your income tax deductions. Make sure that you have the receipt and proof though. You need a canceled check or receipt for any cash gifts that you give a charity.
You should also receive a receipt in writing from a charity for large gifts. And, large non-cash gifts that are worth more than $5,000 typically require you to get an appraisal in order for you to use the charitable gift tax deduction.