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East Oregonian
EASTERN OREGON MARKETPLACE
Tuesday, January, 23, 2018
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FAMILY FEATURES
W
ith tax season in full swing, take time to consider
how to get the most out of your tax return, which
includes finding all the credits and deductions
available to you. While many taxpayers claim
common deductions, such as home mortgage interest and
self-employment expenses, there are additional tax deductions
that can lessen your final tax bill or increase your refund.
These often-overlooked tax breaks could potentially save you
hundreds – maybe even thousands – of dollars if you itemize
deductions.
To start, get to know the difference between tax credits and
tax deductions. Tax credits reduce the amount you owe in taxes.
In some circumstances, tax credits allow a refundable credit,
meaning you may not only reduce the amount you owe to $0,
but you can also get money back. Deductions, on the other
hand, simply reduce your taxable income. Both can have a
potentially significant impact on your taxes and are often worth
the extra effort to include on your return.
Some commonly overlooked credits include:
1. Child and Dependent Care Credit
You can claim a credit of up to $2,100 for day care for
your dependents so you and your spouse can work.
Qualifying dependents include children under 13 and
parents who are no longer able to care for themselves.
2. Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a federal
tax credit based on your income and the number of
qualifying children living with you. Nearly 1 in 5 people
who qualify fail to claim the credit, worth up to $6,318.
Just because you didn’t qualify last year doesn’t mean
you won’t this year; one-third of the EITC-eligible
population changes each year based on marital, parental
and financial status.
3. Saver’s Credit or the Retirement Savings
Contributions Credit
Make sure you “pay yourself first.” Even if it is only
$20 each pay cycle, make sure you are putting some
money into a retirement fund. If your company offers
a retirement savings plan, like a 401(k), it is usually in
your best interest to participate. If your income is lower
than $60,000, you can receive a credit of up to $1,000
for a contribution of up to $2,000 into an IRA or an
employer-provided retirement account, such as a 401(k).
The credit is in addition to any deduction or
exclusion from income for the contribution.
Some tax deductions that allow you to reduce your
taxable
income include:
1. Moving Expenses
If you moved for a job that is at least 50 miles
away from your home and held this job for at least
39 weeks, you can claim your moving expenses
even if you don’t itemize deductions.
2. Tax-Preparation Fees
Plan for tax time. Tax laws change and so do life
circumstances. Using a professional to help you
file your return may be a wise investment. For
example, the tax pros
at Jackson Hewitt can help you get every
deduction and credit you deserve and the biggest
refund possible. Plus, the cost of preparing
your taxes can be claimed if you itemize
your deductions. In fact, one missed credit or
deduction could
more than cover the cost of having your taxes
prepared by
a tax professional.
3. New Moms
Breast pumps and lactation supplies are considered
medical equipment, which means they qualify for a
possible deduction.
4. Career Corner
Job hunting often means investing both time and money.
However, you may be able to deduct some of the job-
search expenses you incur. Costs such as preparing
resumes, creating and maintaining websites, business
cards, agency fees and travel expenses may be eligible.
5. Wedding Bells
If you were married in a church or at a historical site
during the past year, you may be able to deduct fees paid
to the venue as a charitable donation.
6. Medical Fitness
While general toning and fitness workouts to improve
general health are considered personal expenses, you may
be able to deduct your gym membership as a medical
expense. If a doctor diagnoses you with a specific
medical condition, such as obesity or hypertension,
or a specific physical or mental illness, and prescribes
workouts or participation in a weight-loss program to
treat your illness, the membership dues may
be tax-deductible.
7. Road Warriors
If you travel for business and aren’t reimbursed by your
employer, those costs can qualify as a deduction.
Every possible tax credit and deduction can help when money
is tight. You might qualify for at least one over looked credit
or deduction – and maybe more than one. Consult a tax
professional
to discuss how you can maxi mize your refund and learn more
at JacksonHewitt.com.
Refund Advance
Did You Know?
If you’re getting a refund, you typically want
it as soon as possible, but that isn’t always an
option, especially if you are one of the millions of
Americans who claim either the Earned Income
Tax Credit or Additional Child Tax Credit. You
could access up to $3,200 with a no-fee Refund
Advance loan at zero percent annual percentage
rate (APR), offered by MetaBank, at participating
Jackson Hewitt locations. Terms apply, visit
JacksonHewitt.com for details.
1. The IRS, as well as many states, allows taxpayers to catch up on missed credits
or deductions, offering a three-year window for filing an amended tax return. You
can secure unclaimed credits and deductions by filing amended tax returns to avoid
losing any unclaimed funds from as far back as 2014.
2. With locations across the United States, including kiosks in 3,000 Walmart stores,
the tax professionals at Jackson Hewitt make it easy to stop in when it’s most
convenient for you.
3. If you are a single parent, you can file as Head of Household instead of Single.
This filing status can provide better deduction options and a lower tax rate schedule.