Tax tips offered

Tax tips offered
February 08
04:00 2018

ASHEBORO  — As tax filing season continues to build with the release of W-2s, there are several questions often asked.  Here are the Liberty Tax top 12 tips based upon those questions. 

1. FILE EARLY. If you file your tax return early in the season, you’re less likely to become a victim of tax identity theft.

2. A $6,318 TAX BREAK. Every year, millions of eligible taxpayers miss out on the earned income tax credit, worth up to $6,318 this tax year.  Even if you don’t owe taxes, you may be eligible for a refund.

3. NO TAX ON CHILD SUPPORT. Child support is not considered alimony and, therefore is not taxable. Alimony, on the other hand, is considered taxable income.

4. TEACHERS CAN DEDUCT. Teachers, grades K-12, who pay out of pocket for supplies can deduct up to $250 for unreimbursed expenses.

5. JOB TIP. If you looked for a job in your current profession, you can deduct certain job search expenses.

6. KIDS AND CREDITS. Mommies and daddies who welcomed a new baby can deduct certain medical expenses. These include: breast pumps and supplies, such as nursing bras; hospital services to deliver your baby, and more.

7. UNEMPLOYED AND TAXED. If you receive unemployment compensation, you should receive Form 1099-G. Any unemployment compensation received must be included in your income.

8. MILITARY COMBAT PAY. If you serve in a combat zone, you can choose whether to claim combat pay for the earned income credit. This decision can increase or decrease the amount of the earned income credit received.  For those in the military, combat pay, the Basic Allowance for Housing, and the Basic Allowance for Subsistence are considered non-taxable income.

9. STUDENT LOAN RELIEF. You can deduct up to $2,500 in interest paid on qualified student loans. Your deduction limit decreases and phases out based on your income.

10. ON-THE-JOB DEDUCTIONS. Union dues, job-related magazines and books, and clothes or uniforms that are not everyday wear may be deductible.

11. UBER DEDUCTIONS. Uber drivers are subject to self-employment taxes, but they can deduct some of out-of-pocket expenses, including mileage or actual expenses, the portion of your mobile phone bill used for business, and passenger supplies, such as mints and water.

12. COLLEGE TAX RELIEF. Payments made in the first three months of 2018 to a qualified educational institution can be used toward credit on your 2017 tax return with regard to the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition & Fees Deduction.

Liberty Tax Inc. provides these and other tax tips. Founded in 1997, Liberty Tax Inc. is the parent company of Liberty Tax Service. In the U.S. and Canada, last year, Liberty Tax prepared over 2 million individual income tax returns in more than 4,000 offices and online. Liberty Tax’s online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor to many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook. 

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