File IRS Taxes With New Tax Credits & Deductions

This year, many taxpayers underwent major life changes after they went to file IRS taxes last year and may be eligible to claim new tax deductions and credits. You may want to review to see if your lowered Adjusted Gross Income (AGI) now allows you to claim these tax deductions and credits when you file IRS taxes for 2011.

As always, be sure to contact a tax professional, such as a CPA, to assist you when you are about to file IRS taxes with new deductions and credits, to avoid any mistakes that could cause an audit, or worse, a tax debt.

Tax Credits & Deductions

1. Earned Income Credit: If you earn less than you did in the previous year, this tax credit may be able to increase the size of your refund. This credit does depend on the number of dependents and income, so visit the IRS EITC page for reference before filing IRS taxes.


2. Miscellaneous Deductions: You may be able to deduct the expenses you spent while looking for new employment, including resume and interview supplies, travel and moving costs (if you found a job at minimum 50 miles away from your home), as well as work uniforms and continuing education for your trade. These deductions are subjected to strict guidelines, so it is important to read the Miscellaneous Deductions page before filing IRS taxes with any of the mentioned deductions.


3. Child Tax Credit: For single taxpayers whose the AGI for the year is lower than $75,000, or $110,000 for married taxpayers who file IRS taxes jointly, you will be eligible to receive the maximum tax credit of $1,000 per child (under 17 by the end of the tax year) when you file IRS taxes. The tax credit depletes $50 per child if your income exceeds the maximum AGI amounts.
   
   
4. Disaster Relief: There were tornadoes, earthquakes, and floods that many states experienced. For property damage that isn't covered by insurance, you can deduct the losses on your return once you begin to file IRS taxes.

To learn about additional tax credits and deductions that you may qualify for, visit our Tax Planning page.

If the IRS has assessed you a tax debt because you mistakenly claimed too many tax credits or deductions, call (800) 590-4524 now or fill out the form below for a free consultation on what you need to know before you file IRS taxes. We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.