Personal Finance

That means that your 2017 is the last time you may be able to nab certain breaks, including a variety of miscellaneous itemized deductions and the full value of your state and local taxes if they exceed $10,000.

Last-minute filers are likely to miss these deductions if they rush through the process, said Debbie Freeman, director of financial planning at Peak Financial Advisors in Denver.

Student loan interest: You can deduct the lesser of $2,500 or the amount of interest paid during the year, subject to income phaseouts.

Moving expenses: You moved due to a change in your job and your new workplace is at least 50 miles farther away from your old home versus the distance between your old dwelling and your old workplace.

Property taxes: It’s not just your primary home that can qualify, but also your second home and perhaps even your timeshare.

Noncash charitable contributions: Be sure to include your receipts. You’ll need to file Form 8283 if your deduction for all noncash gifts is over $500.

Contributions to certain tax-advantaged accounts: That includes your health savings account and your individual retirement account.

Finally, if you hurry through your return, you might miss out on the fact that you have to report your nondeductible IRA contributions for the year.

This way, you establish basis in your IRA, and when you start taking distributions in retirement, that portion will come out tax free, said Freeman.

It’s all the more reason to slow down as you proceed.

“Don’t allow the time crunch to affect your work,” Freeman said. “Sit down and focus on your taxes.”

More from Your Money, Your Future:
Got crypto? Here’s how to avoid an audit from the IRS
How to get your taxes done for free

What to do if you can’t pay your tax bill on time

Source link

Products You May Like

Articles You May Like

Wall Street doesn’t care about your good earnings right now
Social media for career advancement, professionals
IBM stock suffered its worst day since 2013
Trading volume is way down, but there might be some simple explanations
World economy is still good, but recession risks are increasing

Leave a Reply

Your email address will not be published. Required fields are marked *