More Tax Relief?
1) The IRS just released a press release regarding a new deduction for the 2008 and 2009 tax years. If you pay real estate taxes, but don’t have enough deductions to itemize on Schedule A, you can still deduct some of the real estate tax you pay on your home. The amount can be up to $500 per person or $1,000 for those that are joint filers. This means if you are married filing joint, your standard deduction could be increased from $10,900 to a maximum of $11,900. Depending on your marginal rate, this could equate to a significant tax savings. Make sure you talk to your tax preparer about this deduction. There is some fine print regarding qualifications for this deduction.
2) Don’t forget about the Retirement savings credit. If you fall into one of the following categories, you may be able to take an additional credit against your tax liability for contributing to a retirement plan:
- Single with income up to $26,500
- Head of Household with income up to $39,750
- Married Filing Jointly, with incomes up to $53,000
This is a great incentive to establish and contribute to a retirement plan. You can contribute for the 2008 tax year until April 15 of 2009. Check with your tax preparer or financial advisor regarding the best type of investment for your situation.
Don’t miss out on these tax savings items. There are many credits and deductions available in the tax code. This is yet another reason to have a licensed tax preparer take care of your tax return. You don’t want to miss out because you didn’t know that they existed!
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