When it comes to annual tax filings, this is officially crunch time, but Americans who are still scrambling to get all their documents in order and mailed in on time may want to take an extra hour or two to examine whether they're doing all they can to reduce their liabilities as much as possible, or maximize the size of their returns.
For instance, there's one type of tax credit that most Americans will be able to claim as a means of significantly slashing their costs, according to a report from Norfolk, Va., television station WVEC. This refers to the earned income tax credit, and is available to qualifying individuals who made less than $51,567 over the course of 2013. This can potentially save thousands of dollars from liabilities, and perhaps push taxpayers into the territory in which they will receive a refund.
Other common types of tax breaks for which consumers might generally be eligible are those related to paying for child care while they work, the report said. In addition, anyone who has looked for a job over the last year might be able to deduct the costs they faced for doing so, including preparation of their resumes, employment agency fees, and even mileage for when they had to drive to interviews.
What else can be deducted?
One thing many Americans may not know about, which can be used to further reduce what they owe on federal income tax, is what they've paid for other types of taxes, such as state sales tax, the report said. In addition, those homeowners who have installed new windows, or gone through other changes to increase the energy efficiency of their houses may also be able to get back some of those costs, up to $300.
Of course, one of the best ways for consumers to make sure they're maximizing their savings on their annual filings is to work with tax professionals who may be far more acquainted with the types of deductions that will be available given their unique circumstances. They may also be able to spot common errors and other issues that consumers regularly face, which can complicate the refund process under normal circumstances.
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.