6 Tax Breaks You May Want To Remember...

If you do your own taxes-or even if you have them done for you-there are few things scarier than thinking the IRS might challenge one or two of your deductions. But, according to IRS sources, many taxpayers are so cautious they decline to list some eligible deductions.

Here, from a panel of tax accountants, are six deductions you want to be sure to track and remember:

Charitable donations. Eligible deductions may include goods and services as well as cash donations. Keep returned checks or credit card receipts for cash donations to charity. For non-cash donations, get a receipt from the charity stating the value of the goods and services you have given.

Child care credit. Most taxpayers know that the money you pay for child care while you are working is deductible. But paying a child care provider in cash with no traceable record of payment will make it very difficult to claim. Pay by check and be sure to keep records.

Home energy efficiency improvements. Consumers may claim 30% of the cost, up to $1,500, of energy efficient home improvements like windows, doors, insulation, roofs and heating or cooling equipment. Be sure to claim these if you've made such improvements in 2010.

Residential renewable energy tax credits. Solar energy systems, small wind systems, geothermal heat pumps, and residential fuel cell and micro-turbine systems are also worth a tax credit of up to 30% of their cost. (an especially good deal when combined with the money you will save in electric costs in the coming years).

Automobile tax credits. If you purchase a hybrid gas-electric or alternative fuel vehicle in 2010, you can get a credit on your taxes. Amounts may vary according to what type of car you buy, so check with the dealer for the latest information.

Relocation expenses. If you have moved for your job, and the distance from your new work location is at least 50 miles longer than your original commute, you may be able to recover some of your relocation expenses. (But be aware you need to have been employed for at least 39 weeks out of the 12 months immediately following your move).

 

Phyllis Lerner, Realtor

Broker / Owner

http://westchester-real-estate.us
914-438-7556