It's now officially crunch time when it comes to finding the best tax deductions available to consumers ahead of the filing deadline, which is only about a week away at this point. However, at this time it might be the most important for taxpayers who are rushing to cover themselves and maximize their potential refunds to examine the ways in which others make mistakes and miss what could be extremely valuable deductions.
In many cases, those who do their own taxes simply don't know the many types of deductions for which they may be eligible, or are worried that by claiming too many they will arouse the suspicion of the Internal Revenue Service and trigger an audit, according to a report from the New York Post. The variety of tax breaks consumers may be able to claim is often huge, and there's nothing wrong with them taking every one to which they are totally entitled.
"First of all, people need to relax and calmly review the deductions that are available," Lewis Altfest, a certified public accountant and adviser in Manhattan, told the newspaper. "Often a client will take a deduction one year and then forget to take it in succeeding years."
Some savings that often go by the wayside
One deduction many parents may be able to claim will help cover the cost of a kid's trips to summer day camp, the report said. This can be deducted because the federal government views it as being tantamount to day care; however, if they sleep over, it can no longer be claimed. In addition, consumers should also try to keep in mind that any tax advice they receive from a professional will be able to help them further reduce their liabilities, because these fees can be written off as well.
In addition to that benefit, working with a tax professional can also help by allowing people to discover all the various benefits for which they may be able to qualify. This, in turn, can potentially maximize the size of a refund from the Internal Revenue Service while giving taxpayers the assurance that they won't have made any mistakes that could increase their chances of being audited.
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.