With so many changes to the tax laws recently, here are some basic tax tips for individuals will help you prepare for your year-end tax preparation:
1. Job search expenses that you incur while looking for employment, and are related to your current occupation, are deductible.
2. Education Tax Credit should be considered when preparing tax returns. Check to see if the Hope Credit or Lifetime Learning Credit applies.
3. Home insurance premiums may be deductible. To qualify, the insurance policy must be for home acquisition debt. Mortgage Insurance premiums are reported on form 1098 which is sent out by the lender.
4. Tax preparation fees are tax deductible.
5. First-Time Homebuyer Credit applies to individuals who purchase a home after April 8, 2008 and before July 1, 2009. It only applies to your main home located in the United States.
6. Charitable contributions to an IRS recognized charitable entity are tax deductible.
7. Medical Expenses are deductible if you spend more than 7.5% of your adjusted gross income on non-reimbursed medical expenses.
8. Claim dependents who are full time students, live with you and whom you provide half of their support. They have to be between the ages of 19 and 24.
9. Real Property tax deductions maybe claimed by individuals that elect to itemize.
10. Educator Expenses are deductible up to $250 for classroom supplies that are purchased during the year.
11. Look for help from someone who is familiar with tax laws.
These are just a few tax tips for individuals. Tax time is can be stressful, but these tips can save you some money or your tax liability.