Los Angeles Accountants Name Top 5 Irs Deductions People Miss

By Author: Vikram Kumar
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There are a number of IRS deductions that people often miss when they are completing their own tax returns. For this reason, it is advisable for those who want to make the most of the credits and deductions offered by the IRS to seek out a CPA Los Angeles who will complete their income tax returns for them. These credits and deductions can make a difference to the amount that one has to pay or receives in a return from the IRS. The top 5 deductions that are missed are as follows:

Charitable Donations - Non Cash

Non cash charitable donations can include a donation of clothes or household goods to a charity organization. These can actually be written off of the amount of taxes that you have to pay and can even include those that are made with credit card donations that will help you in the following year. In order to take full advantage of these charity deductions that are non cash, you should be sure to get a receipt from the entity where you make the contribution.

Premiums For Health Insurance

If you are paying premiums for your health insurance benefits, then the premiums can be give ...
... you a tax benefit if the amount of your medical expenses get to 7.5 percent of your gross income. Those who are self employed can deduct all of their premiums for health insurance, even if they do not meet the 7.5 percent requirement.

Higher Education Expenses

Los Angeles accountants report that many people do not know about the credits that can be used for students seeking a higher education. The American Opportunity Credit is one as is the Lifetime Learning Credit. These can be used in various situations, especially for those who have a lower income.

Home Improvements For Energy Efficiency

An accountant Los Angeles can help you take a deduction for any energy efficient improvements that you have made to your home. Installing new windows that are energy efficient is one way that you can use this deduction. You need to make sure that the improvements made conform with the standards that are in the IRS tax code.

Credit For Child Care

Those who are paying a baby sitter, daycare or other entity for child care so that they can go to school or work can deduct $3K for one child and $6K for two children or more. These are for children who are aged 12 or under and meet with the current tax code.

Los Angeles accountants also state that other tax credits and deductions such as Educator expenses, investment and tax expenses, retirement tax credit, refinance points paid as well as state sales tax are often missed by those who are completing their own tax returns. For this reason, it is best to use a tax professional to make sure that you get all of the tax credits and deductions that are due to you when it comes to filing your federal income tax forms.

Resource:

Using a CPA Los Angeles can help you get all of the tax credits and deductions that you are entitled to by the tax code set forth by the IRS. To discover more of how Los Angeles Accountants can help you, go to CPALA.com.