Tax Defense Network: Tax Filing, Deductions, & Taxpayers

 

American taxpayers find themselves racing against the clock during tax season, scurrying around to find the best tax deductions that will reduce their tax liability, or increase their tax refund. Tax Defense Network outlines the ways taxpayers can take advantage of the available tax deductions during tax time.

Tax Defense Network confirms that many tax deductions have conditions that taxpayers must qualify for in order to claim the deduction on their tax return. Tax Defense Network warns that if a taxpayer lists deductions on their taxes that they do not qualify for, the odds of an audit increase substantially and a probable tax debt will be the outcome.

Taxpayers should research temporary tax deductions that have been recently included in the tax code because, Tax Defense Network explains, these tax deductions usually have limited qualifications so that a majority of taxpayers can take advantage of them.

Tax Defense Network Clarifies Which Deduction to Choose

Tax Defense Network believes that many taxpayers would benefit from itemizing their deductions, yet there are plenty of taxpayers who do not. Tax Defense Network has stated the simplest way to decide if itemizing deductions is the best route is to add the sum of your deductions and then compare that to the standard deduction the government allows for your filing status. Tax Defense Network advises taxpayers to also be aware of the additional standard deductions that taxpayers may be able to claim, such as dependents and charitable contributions.

Tax Defense Network: Do Not Miss Out on Deductions

Tax Defense Network says that it witnesses taxpayers miss out on tax deductions every year because they are unaware of the available tax deductions. Tax Defense Network gives the top three tax deductions that many taxpayers do not claim.

1. 1.      Medical Premiums: Many medical premiums, including long-term premiums, may be deductible if they exceed 7.5% of the adjusted gross income (AGI). Of course, this is if taxpayers itemize their deductions to get the maximum benefit. Also, Tax Defense Network points out, since 2010, taxpayers who are self-employed can now deduct their health insurance premiums when totaling their Social Security.
2. 2.      Higher-Education Expenses: Tax Defense Network knows that college is expensive, and with student loan debt exceeding $1 trillion dollars, the government has begun to give relief to college students. Taxpayers can deduct up to $4000 in educational expenses if their AGI doesn’t exceed $65,000 or $130,000 for a joint return. Tax Defense Network adds that there are also tax credits aimed at reducing college students’ tax burden that all should investigate.
3. 3.      Casualty Deductions:  There have been wild fires, tornadoes, floods, and blizzards that have devastated parts of the U.S; but Tax Defense Network explains that if the President declared your area a disaster zone, then taxpayers within that area can claim their losses on their tax return for that year.

Tax Defense Network believes that taxpayers can lessen their tax liability or get the maximum refund possible without resorting to accounting trickery by just claiming these allowable tax deductions. Tax Defense Network advises taxpayers should always participate in early tax-planning in order to make sure that they are receiving every dime they are entitled to.