- If you’re planning to adopt a child, get details on your eligibility for the adoption tax credit.
- Consider long-term health care insurance if appropriate in your situation. Premiums are deductible (within limits) under the rules for deducting medical expenses.
- If you’re in business, be aware that the legal form your business operates under can have a significant effect on the taxes you’ll pay. If you haven’t done so recently, it is a good idea to review your legal form to see if it’s still your best choice.
- Do you use your car for business trips? If so, you’re entitled to deduct your automobile expenses attributable to business driving. However, there are several twists and turns along the way. For starters, you can’t deduct the cost of commuting back and forth from work. This is a purely personal expense. But trips between your regular workplace and a client’s business location count as business travel. In addition, you may deduct expenses for traveling between different branches of your business.There are two basic ways to deduct business auto expenses: the actual expense method or the standard mileage rate.
- Pay attention to the income levels at which various tax breaks phase out. While it doesn’t make sense to make less income just to qualify for a tax break, shifting income from one year to another may sometimes be a smart thing to do.Learn about the tax credits and deductions for which you might qualify. Then estimate your income, and if it will be just beyond qualification range, look for opportunities to defer income until a later year. Investment income can often be shifted, or you might delay the exercise of stock options or the receipt of a bonus.
The information on this site is general in nature and should not be acted upon in your particular situation without further details and/or professional advice. For assistance, contact our office.