So, like many Americans, you have yet to file your taxes. Really, you have no excuse—anyone can easily file taxes in under an hour with free and easy online programs. However, some of thesefree tax filing programs may be causing you to not get your full refund. These programs generally use short tax forms, when some of your deductions may necessitate the longer forms. To make sure you do not pay too much or miss out on money you are owed, check these five areas before you hit “file”:
1) Interest on Student Loans. If your loans are still owned by a government lender, you can deduct the amount of interest you paid. You should have gotten documentation via postal mail from your lender, but it’s not a bad idea to call and check on the amount, if any, you can deduct (limit is $2,500.)
2) Mileage to Charity Events: Did you attend several charity events? Even one can make you eligible for a deduction, not only for what you donated but mileage as well. For travel to these events, you can deduct 14 cents per mile. You can deduct even more per mile, 32 cents per mile, if your charity work involved relief for victims for Hurricane Katrina.
3) Anything Job Search Related: Did you search for a new job this year? You can deduct any money paid related to a search for a new position. Resume paper, a new suit and travel to and from interviews can be deducted, so long as you are not reimbursed from the hiring company.
4) Travel: If you conducted any business on a trip (and you can prove it, in the case of an audit) you can deduct the costs of the trip for business reasons.
5) Telephone: This is a one-time refund (not deduction), but if you own a phone you can get $30 back from a federal excise tax (the amount is $60 if you have a family of four or more.) For deductions, check how much you are calling your place of business, or how much time you spend talking about business matters. Also, this has to be your personal cell phone, not the cell phone for which the company is already paying.
On a final note, it may not be too late to hire someone to file your taxes for you. You might end up getting more back than you thought, making the expense worth the while. Also, you can deduct the payments made to an accountant on next year’s taxes, so you’ll get money back next year too.
Kristi Klemm - I am a freelance writer and marketing specialist who lives in Chicago. I enjoy travel, discovering new places and restaurants, politics ...
