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The October 15th extension deadline has passed. Now is the time to start preparing for next year. In this newsletter we have provided some tips and information on deductions that may help you on your 2014 Tax Return. The 2014 Pub 17 has not been released but we do not anticipate the deductions changing from last year. These links refer to the 2013 Publication 17.
A Standard deduction is a set amount based on a person's filing status.
- Single - $6,200
- Married Filing Joint - $12,400
- Married Filing Seprately - $6,200
- Head of Household - $9,100
Itemized deductions are based on actual expenses, you will need to have documentation to prove that those expenses are legitimate if the IRS asks for proof. If your total Itemized Deductions exceed the Standard Deduction for your filing status then you may benefit from itemizing.
Here is a list of some deductions that can be itemized and links for more information:
- State and Local Income Taxes or Sales Tax: The option to deduct Sales Tax expired in 2013. Unless it is extended by Congress this is NOT an option for 2014, you can only deduct state income taxes paid.
- Real Estate Taxes can be deducted only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority Click Here to read more.
- Personal Property Taxes, Vehicle Registration fee for example, may be deducted. Click Here to learn more. If you need to get a copy of your Vehicle Fee Recap go to servicearizona.com to get your Vehicle Fee Recap. We will need this information to prepare your tax return.
- Investment Interest that may be deducted as an investor for example if you borrow money to buy property for an investment not derived from a trade or business. Click Here to learn more.
- Gifts you give to charity by cash or non cash may be deductible. For example, Churches, Non Profit Charitable and Non Profit Educational Organizations. Click Here to get explanations on these and more.
- Casualty or Theft Losses (Not Business or Investment related) can be deducted. A loss could be from the damage, destruction or loss of your property from a sudden, unexpected or unusual event. Click Here to find out what is and what is not a casualty or theft loss.
- Unreimbursed Employee Expenses are business related expenses. You are allowed to deduct ordinary and necessary business related expenses for travel, entertainment, gifts or transportation. Click Here for additional information on what is allowed.
- Tax Preparation fees can usually be deducted in the year you pay them. These fees include the cost of tax preparation software programs, tax planning, tax publications and include any fee you paid for electronic filing of your return.
- Investment Expenses and fees including safety deposit boxes. You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income.
To find out the Limit on Itemized Deductions Click Here
For a complete list and information on deductions please Click Here to visit the IRS website.
We hope you have found this information useful and as always if you have questions please do not hesitate to give our office a call!
Sincerely,
Cheryl Wilson, EA, CFP®
CD Tax & Financial LLC
480-354-1040 Phone
480-354-1041 Fax
Cheryl@cdtax.com
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