If you are planning to prepare your own taxes, a little tax planning ahead of time will help before you sit down to complete the paperwork. Don't miss out on these possible deductions to get the most from tax-filing time. Here are a few things to consider.
State income tax deduction
Not all states collect state income taxes. If your state does require it, be sure to keep track of:
- State and local sales tax paid (if your state doesn't have income taxes), and
- Sales tax on a boat, car or plane paid during the tax year. Check limits outlined in the new tax law.
Homeowner tax deductions
If you own a property or home, be sure to keep track of:
- Refinancing mortgage points and interest paid,
- Real estate taxes paid,
- Mortgage interest for a home-equity loan paid, and
- Home energy-related improvement amounts paid.
What medical expenses are tax deductible?
Many health related and medical expenses are deductible. Here are a few.
- Year-end exams,
- Dental exams,
- Eye exams,
- Routine blood work, and
- Medical procedures.
Important things to remember at tax time
Whether you decide to complete your taxes on your own or hire a professional, always be sure to keep thorough records so filing taxes is easy every year. As you clean out old paperwork, some documents should be saved, others may be shred. It's important to keep what's truly needed. If you ever have tax questions, it's always a good idea to consult a tax professional.
Use these helpful calculators to help you plan and take control of your budget.
