NAPLES, Fla. – Nov. 20 2012 – With the 2012 tax season entering its final months, Floridians only have one more month to take advantage of eligible tax credits and deductions while they still apply to 2012 tax returns.
“If you act before Dec. 31, there are many ways individuals can reduce their 2012 tax bills,” says Jack Kuhn, Florida managing director, BMO Private Bank. “By planning ahead, doing some research, working with a tax professional, and identifying the credits and deductions that apply to you, you can keep more money in your wallet.”
Often overlooked tax credits and deductions
Charitable donations: If you make a donation to a nonprofit, you may be entitled to a tax deduction on your federal return. Consult with a tax advisor for details.
Childcare expenses: A portion of the fees for daycare, summer camp or boarding school for children under 13 can be deducted if both parents work or are actively looking for work.
Medical expenses: You may be able to reduce your tax by claiming either all or part of an expense related to a medical impediment as long as you itemize. Among the lesser-known medical expenses are Medicare premiums deducted from Social Security payments, hearing aids, guide dogs for the blind, bathroom aids, contact lenses, an air conditioner to ease a severe respiratory ailment, household help for nursing services, incremental costs of acquiring gluten-free food products for those with celiac disease, exercise programs recommended by a doctor as a treatment for a specific condition, and tutoring services for those with a certified learning disability.
American opportunity credit: Depending on your income, you may be able to receive a tax credit up to $2,500 for college tuition and related expenses.
Harvest capital gains in 2012: This one is dependent on no changes to tax laws that are scheduled to go into effect in 2013. If the Affordable Care Act is not repealed, then those with taxable income of more than $200,000 (or $250,000 if married filing jointly), will be subject to an additional 3.8 percent tax on investment income.
Moving expenses: If you move more than 50 miles for a new job, expenses such as movers, renting a truck, cost of breaking a lease, storing furniture, legal fees, real estate commissions and the cost of food and hotels while moving can be claimed as deductible expenses.
Job hunting costs: If looking for a position in the same line of work you held previously and you itemize, you can deduct expenses associated with trying to land a new position, including out-of-town lodging, transportation, employment agency fees, business card and resume printing costs.
Tax laws vary between states, and as always, consult with a tax professional for a particular situation.
© 2012 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.