The new year is almost here, and soon after that we'll be heading into tax season. Most people look at March and April as tax season, but the sooner you dive in the sooner you can finish...and the more likely you are to not miss out on any potential tax benefits you're entitled to because you're not waiting until the last minute:)
Here are some of the most commonly overlooked benefits:
1) Support for Relatives: Housing or financial support for a relative may make you eligible for a more favorable head-of-household status. Alternately, you might be able to simply claim them as a dependent on your return.
2) Medical Expenses: Medical bills that exceed 7.5% of your Adjusted Gross Income can be deducted; however, insurance premiums cannot. If you are self-employed and don't qualify for a workplace health plan you can claim your insurance premiums.
3) Home Office Deductions: You may be able to deduct a part of your housing expenses if you have a home office. That part of your home must be used exclusively for business and you must be able to prove it's your principal office space.
4) Job Search Expenses: 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.
Of course, this is the last thing you want to think about while preparing for your New Years Eve and New Years Day festivities, but getting a head start on your tax returns will give you time to be more thorough and take advantage of deductions you may not know you qualified for!
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