Tax items to consider before you file your tax return
Filing head of household or single:
- Filing head of household gives you a lower tax rate than filing single. Persons you can claim on your return to file as head of household.
- A qualifying child – a son, daughter, or grandchild that
lived with you at lease ½ a year.
- Your mother and or father – if they don’t claim them self on a return, you can claim one or both.
- A qualifying relative –brother, sister, grandparent, niece
nephew, consin if the relative
lived ½ year with you.
All of the above persons must met certain test
Filing itemized deductions or standard deduction:
reasons to file an itemized return- schedule a
- you own a home, coop, or condo.
- you a had large amount of medical bills
- you had state and city incme tax payments
- you purchased some high cost items for sales tax
- you contribute large amounts to church or charties
- you had a loss on something very value
Did you work 2 jobs for the year:
- check the total amount of social security you paid. You
might have over paid your social security for the year
see form 1040 line 71.
Did you sell your home:
- if you sold your main home, you can exclude from your
income a gain up to $250,000 or $500,000 if you file a joint
Items that may or may no be income:
Debts –money that you owe that is cancelled or forgiven
is income to you.
Life insurance proceeds –not considered part of your income
You sell a life policy for cash –the cash received over the
policy cost is taxable to you
Unemployment benefits – are taxable to you in year received
Alimony/child support – alimony received is taxable. Alimony
paid is deductable.
child support received is not taxable
and the amount paid is not deductable
eductors –if you are a qualified eductor you can deduct $250
for education expenses purchased for students.
see form 1040 line 23
Student loan interest paid – deuctable on your tax return up
to $2,500, see form 1040 line 33
Educational expenses paid – you can claim a deduction or a tax credit for qualified educational
cost for you, your spouse, and your
depentents for a deuction see line 34
for a tax credit see line 50
Bonuses and awards –taxable to you in the year received
Sick pay – money paid to you by your employer is taxable
to you as salary
Accident/ health insurance – payment received are not
taxable to you.
Educational assistance – you can exclude up to $5250 from
income for, assistance from your
Transportation benefits – not taxable when offered by your employer.
Tax credits you may claim:
Child and dependent care credit – see 1040 line 49
Additional child tax credit – see 1040 line 52
Educational expense credit – see 1040 line 50
Home energy credit – see 1040 line53
If you have a choice between taking a deduction or a tax credit, it is better to take the tax credit.