5 Tax Deductions That Are Typically Overlooked

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There are literally hundreds of ways you can use tax deductions to decrease your overall tax burden. Unfortunately, many people don't even know these deductions exist, missing out on thousands of dollars in potential savings each year.

First, it's important to actually remember to file your tax return-- you have until April 15 to do so, or you'll face a late filingpenalty. You may also miss out on the opportunity to receive a refund. In 2009, the IRS got to keep more than $917 million in refunds, since nearly 1 million taxpayers didn't file their tax returns.

Tax deductions go much further than charitable donations and mortgage interest. Here are five things that you probably didn't know were tax deductible.

1. Fees and costs to actually do your taxesThe IRS allows you to deduct the cost of preparing your taxes as a miscellaneous itemized deduction, on the return for the year in which you pay them. For example, if this year you spend $300 to prepare your tax return for 2013, you would be able to deduct $300 for your 2014 return.

This includes the cost of tax preparation software programs, such as H&R Block or TurboTax, any fee you pay for the electronic filing of your return, tax planning advice, the cost of tax-related books or materials, legal advice, fees for a tax audit, and more.

2. Losses from Ponzi-type investment schemesThe phrase "Ponzi scheme" has unfortunately become well known to the public following the Bernard Madoff scandal in 2008, as thousands of taxpayers were affected.

Thankfully, the IRS does offer some relief to the victims of Ponzi schemes.

Added in 2009, the IRS says you can claim a "theft loss due to a Ponzi-type investment scheme" on Form 4684. Taxpayers claiming a loss should mark "Revenue Procedure 2009-20" at the top of the form.

read the rest at http://www.fool.com/personal-finance/taxes/2014/03/30/5-tax-deductions-that-are-typically-overlooked.aspx

How to Plan for your Tax Appointment

You may be hesitant to hire a professional tax service, because you "can't afford it."  But luckily for you, tax accounting services are now perfectly affordable.  When it comes to the money you invest, you should take great care of it.  That is why my firm that offers Hamilton bookkeeping and accounting services, recently blogged about what documents to bring to a tax appointment.  Letting a professional do your taxes means less stress on you, and you won't waster your time trying to figure out complicated tax language.  The most important thing to remember is that by hiring a tax accountant you guarantee that no mistakes will be made on your taxes.  

If you have already hired a tax accountant, or I just convinced you to do so, you most likely already have an appointment or will book one soon.  To make sure you don't waster your own time, and that of the accountant, is is important to come fully prepared.  

To read the full version of this blog post and to learn which documents you need at your tax appointment click here: 

http://profitfinancialservices.com/documents-bring-tax-planning-appointment/

or click here to visit my website.