22 August 2017 ~ 2 Comments

Lesser known tax breaks to take advantage of

The 2014 income tax filing season is now upon us, as the IRS is – after a month-long delay – now finally accepting consumers’ tax returns. However, the fact of the matter is that many Americans put off their filings for a little while after the start of the year because of how difficult, time-consuming, and frustrating the process can be. For those people in particular, the prospect of making taxes fun seems disconnected from the reality of their situations, but the reality is that there are many tax breaks for which they may qualify, but of which they just aren’t aware.

One of the biggest of these tax breaks is known as the Earned Income Tax Credit, often referred to as the EITC, according to a report from the Huffington Post. This allowance is specifically designed for consumers earning less than $51,567 over the course of 2013, and by the IRS’s latest estimates, about 20 percent of all Americans filing their taxes this year will be able to claim it. However, it’s important for these people to keep in mind that people who don’t need to file their taxes because their¬†incomes are so low will still have to do so if they want to obtain the funds available to them through the EITC, which can be worth as much as $6,044. Doing a little bit of research to determine exactly what is needed to claim this credit, and whether they qualify, may help taxpayers to determine their eligibility.

What can homeowners claim?
Of course, perhaps the biggest part of the American Dream is for people to own their own homes, but one of the biggest parts of the homeowners’ dreams is often trying to figure out exactly how much buying a property can help them save on their taxes over the course of a few decades. Fortunately, the answer is often “a lot,” according to a report from Fox Business. Of these, the biggest and perhaps best known is a mortgage interest tax break that can save consumers thousands of dollars per year if their home loans were worth less than $1 million.

But there are other benefits beyond that; for example, those who refinanced their mortgages or obtained a home loan to build or buy their primary residence this year may be able to write off the points they paid to do so. However, the rules for these work differently; points on purchases can be written off completely as long as the loan qualifies, while those for refinances can be written off as monthly costs over the life of the loan, and would therefore be worth much less on a yearly basis.

Of course, consumers may also need to check with their tax professionals to make sure they’re claiming all the various allowances available to them to reduce the amount they owe the IRS and to get the income tax help they need. Doing as much research beforehand as possible could end up saving hundreds or more on their final tax bills.

2 Responses to “Lesser known tax breaks to take advantage of”

  1. Miquel 17 February 2014 at 4:01 am Permalink

    I’m 20 searching for a sports bike.. on the point of take MSF.. what must i get when im done.. Im 6’4″ 175 pounds

  2. Carmelita 26 May 2014 at 3:58 am Permalink

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