millions of Americans fret over the ways in which they're going to have to deal
with their tax obligations as they get everything in order and fill out all the
necessary documents. But in the rush to get everything done, many may also
overlook potentially valuable deductions for which they are eligible but do not
actually claim, and that can cost them as much as thousands of dollars per
to determine exactly which deductions for which they may be eligible, consumers
might first want to think about the ways in which their lives have changed in
major ways over the previous calendar year, according to a report from CNBC.
For example, if they've had a child, helped to put themselves or someone else
through college, or gone through a divorce, there might be some significant tax
benefits for which they may qualify.
can also write off any donations they've made to qualifying charities or other
organizations over the course of the year, the report said. However, the way in
which they value non-cash donations can fall under IRS scrutiny, and they will
also typically have to provide receipts or some other type of proof of their
else is there to know?
In addition, those who have gone through a natural disaster that caused them to
suffer some sort of a loss financially might be able to write that amount off
if their home is in a federal disaster area, the report said. However, if there
was a payout from an insurer or the like, that would often either reduce or
eliminate the value of the deduction, and this is a mistake that many who make
such a claim step into.
sheer speculation on my part, but I think a lot of taxpayers may accidentally
deduct things that they don't realize are going to be paid by insurers,"
Melissa Labant, director of tax advocacy for the American Institute of
Certified Public Accountants, told the network. "They truly are trying to
do the right thing, but they may not know that insurance is going to cover
consumers who are unsure of their status as it relates to deductions should
consult with a tax professional, as this may help them to be sure of exactly
how much they owe and what they're able to claim on their filing for the year.
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Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.