Get an Early Start on Tax Season

Home-owners tax seasonThe holidays are fast approaching, and soon after that we’ll be heading into tax season. Now most people look at March and April as tax season, but the sooner you get started on this daunting task (i.e. organizing receipts, etc.) the sooner you can finish and the more likely you are to not miss out on any potential tax benefits you’re entitled to.

Here are some of those benefits commonly overlooked:

1) If you’re looking for a job in your current field, you may qualify for a deduction of the money you spend on your job search if the deductions total more than 2% of your Adjusted Gross Income (AGI). Moving expenses can also be deducted if the new job is more than 50 miles away.

2) Medical bills that exceed 7.5% of your AGI can be deducted, but not insurance premiums. However, if you are self-employed and don’t qualify for a workplace health plan you can claim your insurance premiums.

3) Housing or financial support that you give to a relative may make you eligible for a more favorable head-of-household status or to simply claim them as a dependent on your return.

4) If you have a home office, you may be able to deduct a part of your housing expenses. You must use that part of your home exclusively for business and be able to prove it’s your principal office space.

Yes, it’s very time consuming, but getting a head start on your tax returns will give you time to be more thorough and take advantage of deductions you didn’t know you qualified for!

For more tips and hands-on help with Lancaster County PA real estate , give me a call at (717) 413-2749

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~ by bobenglishsellshomes on November 18, 2011.

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