20 The QUEE NS Courier • march 14, 2013 for breaking news visit www.queenscourier.com Photo courtesy THEWHO.com s tax tips Seven commonly overlooked income-tax deductions BY BARY LISAK Barry Lisak, EA, is an IRS Enrolled Agent who has operated a tax preparation office for over 30 years. Any questions or comments, please contact mrbarrytax@aol.com or 516-829-7283. Don’t overpay taxes by overlooking tax deductions. The recent numbers show that about 46 million of us itemized deductions on our 1040’s. Here are some common errors. 1. State sales taxes. You must choose between deducting state and local income taxes, or state and local sales taxes. If you purchase a vehicle, boat or airplane, you get to add the state sales tax you paid to the amount shown in IRS tables for your state. The same goes for building materials you purchased. These items are easy to overlook. 2. Job-hunting costs. If you’re among the millions of unemployed Americans who were looking for a job in 2012, you can deduct expenses for looking for a position in the same line of work. Qualifying expenses include resume costs, employment agency fees, transportation costs, and food and lodging if your search took you away from home overnight. 3. Moving expenses to take first job. Moving expenses to get that first job is deductible. You get this writeoff even if you don’t itemize. If you moved more than 50 miles, you can deduct the cost of getting yourself and your household goods to the new area, including mileage and tolls. Overnight lodging is also deductible. 4. Refinancing points. With interest rates so low over the past few years, lots of homes have been refinanced. When you refinance a mortgage you have to deduct the points over the life of the loan (i.e., 30 years). On a second refinance or sale you get to deduct all the remaining points not yet deducted in that year. 5. State tax you paid last year. Did you owe tax when you filed your 2011state tax return? Remember to include that amount with your state tax deduction on your 2012 return, along with state income taxes withheld from your paychecks or paid via estimated tax payments. 6. Military reservists’ travel expenses. If you are a member of the National Guard or military reserve, you may earn a deduction for travel expenses to drills or meetings. To qualify, you must travel more then 100 miles and be away from home overnight. If you qualify, you can deduct the cost of lodging, half the cost of your meals, and mileage costs. 7. Excess Social Security. If you worked for more than one employer, and each took Social Security taxes out of your paycheck based on what they paid you. You may claim a refund of the excess on your return if your yearly wages exceeded $110,100. Tax season is here and several people have purchased and refinanced their homes in 2012. It is important to know what deductions are allowed by the IRS. Unfortunately, there are a lot of tax return preparers, who are not familiar with the IRS regulations and many of these taxpayers find themselves in huge problems with the IRS because of these fictitious deductions the IRS will reject. There a big difference between a one family dwelling and a two or more family dwelling. The deductions are different and the taxpayer should be aware of what deductions can be included in the return. These are the deductions allowed for a one family dwelling: P Property taxes; P Mortgage Interest; and, P Points paid in connection with the mortgage. For a two, three and four family dwellings, the deductions are permitted to the extend of the percentage used by the rental units within the dwelling. For example: a two family dwelling can deduct 50% of the following expenses: P Property taxes; P Utilities such as: gas, electricity, P Mortgage Interest and Points; water and sewer; P Legal and Professional Fees: P Heating Oil; P Maintenance Fees; P Pest Control & Exterminator; P Property Repairs; P Depreciation and Insurance. Be aware that these expenses are permitted to the extend of the rental income received. For example, if a homeowner has received $12,000 in rental income, the 50% of all expenses used as deductions should not be over the rental income unless the addition of the property taxes, mortgage interest, points, legal and professionals fees and maintenance fees are above the rental income received. It is very important you choose the Right Tax Professional. If you heard of a tax preparer with a reputation of getting a large refund, be careful because the IRS takes three years to audit a taxpayer’s return. Javier N. Solis is the President and Founder of Los Taxes Network, the First and Only Latino Network of Tax Preparation in America. You can contact Javier directly at JSolis@LosTaxes.com or 718-645-0690. His main office is located at 2812 Fulton Street, Brooklyn, NY 11207 At Gilman Ciocia, you’ll receive 25% OFF* whatever you paid your accountant last year. And that’s only the beginning. We like saving people money on their taxes - and we’d like to help you. With the economy the way it is, there’s never been a better time to take control of your taxes. Call to schedule an appointment Queens Office: 35-30 Francis Lewis Blvd. Flushing, NY 11358 718-304-2035 www.gtax.com Jim Ciocia, Founder and Chairman *$99 minimum tax preparation fee. Please bring your invoice from last years tax preparation fees. Offer available for 2012 tax returns only. Not to be combined with any other offer. Non-negotiable. No cash value. If you had your taxes prepared by Gilman Ciocia in 2012, you do not qualify for this promotion. This discount must be requested at time of service, no credits will be issued after the tax return has been filed. Offer expires March 31, 2013. WARNING: Read This Before Filing Your Tax Return Top 11 Reasons For Choosing Expert Taxes 1. Queens Courier Tax Columnist 2. IRS Enrolled Agent, 30 Years Experience 3. Nassau County Libraries tax Lecturer 4. Free Electronic Filing ($25 Value) 5. Free Review Of Last 3 Yrs. Tax Returns ($120 Value) 6. Cash rewards for referrals ($50 Bucks) 7. Free Book : 21 Audit Red Flags ($15 Value) 8. Free List Of 75+ Job Deductions ($25 value) 9. Free Gift (Retail Value $20) 10. Audit Protection (Ask For Details) 11. Close, nearby Great Neck Office How’s That For Taking Care Of My New Clients? Are You going Crazy Worrying About The IRS? Barry Lisak, EA IRS ENROLLED AGENT (516) TAX-SAVE mrbarrytax@aol.com Barry Lisak, EA IRS ENROLLED AGENT 829-7283 67 Colgate Road, Great Neck, NY 11023 tel: 516-TAX-SAVE (829-7283) fax: 516-466-3837 “the employee / retiree tax expert” TAX INFO CORNER Homeowners and Deductions By: Javier N. Solis Advertorial
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