Claim Tax Deductions to Lower Your Taxes – Top IRS Deductions to Help Lower Your Tax Payments
Recently Federal Government has announced a reminder for all tax payers to file their Federal Tax returns & pay the taxes they owe by the deadline of April 15, 2009. Filing your tax returns and paying them up in time really saves your hard earned money. Beside tax returns filing, you can claim many tax deductions in order to lower your taxes. The wise thing would be to research well about the IRS deductions before filing your return.
Some of these are mentioned below :
Paying you tax with a debit or credit card
In case you make this payment by the debit or credit card, you are eligible for an IRS deduction. The processors’ charges of the payments made would be your deduction. They would be reduced as a miscellaneous expense. This would not lower your taxes so easily.
The mandatory rules on this are as follows:
· You must itemize it.
· The value of the miscellaneous deductions including your credit card fees & the other items like un-reimbursed employee expenses & tax preparation fees are deductible only by the amount that exceeds 2% of your modificated gross income.
· This 2% also includes other entries like AGI threshold, union dues, legal fees, safe place box fees, etc.
Using your home to lower your tax burden
You can claim the tax deductions on the basis of your mortgage payments. You must itemize it in your financial statements and that amount would enjoy a proper deduction.
The tax credits in the year 2009 under the Stimulus Package do have to be paid back. You might make use of these to save your money. Check the credits you are eligible for. for example, the first time home buyers can enjoy assistance from $ 7500 to $ 8000.
The best way to claim your tax deductions and lower your taxes is to consult a qualified specialized. They would give you very basic & updated tips and shall guide you properly.