End of Tax Season
April 6, 2011 § Leave a comment
I recently read an article from the Wall Street Journal entitled “30 Last-Minute Tax Tips”. It gave readers tips on everything from overlooked deductions to common errors to items that often trigger audits. One interesting deduction that is often overlooked are charitable contributions that come straight out of ones paycheck. Often people forget about these once tax season rolls around and because employers don’t include this number anywhere on an employee’s W-2 it often goes un-deducted.
Certain items that can trigger audits included home mortgage interest deduction in excess of $50,000, rental real estate losses, and the home buyer tax credit. I think it was wise to include a section on audit triggers because it helps give taxpayers a heads up as to what they can expect. The section on common errors was also helpful, advising people not to overstate their charitable deductions and to make sure not to miss out on the Making Work Pay credit that is available. This article was very informative and will hopefully help taxpayers get the most out of their tax return.