MORE: ABC12 Tax Tips from the IRS
The goal that many of us set out to accomplish this time of year is
finding a way to get more money back on your return. It's easier said than
done, but as ABC12's Marc Jacobson shows us, you can make it happen.
Income tax season is in full swing, and everybody's hoping to get a big,
fat check back from Uncle Sam. The question is, just how much money
can you expect?
Tadrick's Tax Service in Flint is one of the oldest independent
preparation companies in the country. Tadrick's recommends carefully combing
through that long list of available federal credits when filling out your
forms.
"Child care credits, education credits, retirement savings credits, child tax credits, energy credits, earned income credits, making work pay credit, American opportunity credit. Many people miss certain credits that are out there, and these things are worth hundreds, if not thousands of dollars to your refund," Tadrick said.
If your income level is high enough to allow itemizing, you're in luck.
That's where Tadrick says those easy-to-forget deductions come in to play.
Tax attorney Robert Bancroft warns against taking too much in deductions.
When it comes to items like resume paper and ink cartridges, writing off 100
percent of those expenses can raise red flags with the IRS. "Home office deductions have always been something that create an
interest because often people try to write off the expense of living in
their house."
If you play it safe, all those small deductions and credits can quickly
add up. Tadrick's has seen its share of success stories this year.
When it comes to getting even more money back, CPAs Jennifer Daly and Jennifer Maker say there are a few changes this year to remember - changes to casualty loss claims that may be able help your cause.
Last year, you had to subtract $500 from your loss. This year, it's only
$100.
"The tree fell over, the wind storm sent it crashing through your garage - that type of thing. Things that are not covered by insurance or maybe insurance did cover, but only partially," Maker explained.
As far as your Michigan state tax return goes, Maker says don't forget
about the Energy Surcharge Credit. Last year, energy providers began billing
customers an additional line item worth a couple of dollars. "It's on your
Consumers or DTE bill. The state of Michigan is offering a credit on that.
It maxxes out at 6 or $7, but it's our 6 or $7. Let's go ahead and
take advantage of that."
Be cautious if you don't want any problems later. Daley says
getting greedy can cost you. "I think that just like everyone else, the
government is looking for money. I haven't seen it yet, but I have heard
that they are auditing more."
Remember to never assume you qualify for every credit or deduction on
that wish list.
"You can even Google the particular information. If someone tells you you can get a particular deduction, check it out yourself if it seems too good to be true,:" Bancroft cautioned
Keep in mind that you've probably seen ads on TV for those free tax
preparation websites. While it might be tempting to save a few dollars, if
you ask the pros, they say you might not be saving anything at all.
"They say we'll do your federal filing for free, but they're going to charge you for the electronic filing of that return. They'll charge you for the state return, the local return and any additional forms you may have. Nothings for free in this world, so just remember that," Tadrick said.
This year's deadline to file with the IRS isn't until April 18,
three days later than usual.
