Disclaimer: I am not a Tax Professional. Please see a Tax Professional for exact information regarding any Tax Credits or Deductions that may be applicable to your specific personal tax situation.
I have always done my own taxes, thankfully in all the years that Iʻve had to file my own taxes, the Internet was around to make it a lot easier. I remember when I was growing up, it was this time of the year my mom would take us to the public library, not for us to borrow books but so she could pick up the current years tax forms and instructions. Back then my mom would do her own taxes, but after awhile my parents started to use a professional tax service.
Online Tax Preparation Services make it convenient to complete your taxes on your own time. By doing my own taxes, I also have learned a few things in regards to what you can claim and what you can't claim. Here are 10 Things I've learned from doing my own taxes: 1. Savers Credit
If you contribute to your 401K, 403B or other similar retirement account you may qualify for a Savers Credit.
2. Child Care Credit
If you pay someone else to watch your child so that you can go to work or school, you may be able to write off those expenses. We sent our son to Summer Day Camp at the Kroc Center and he started attending A+ After School Program in the Fall. So we spent about just about $1,000 on child care costs. When I did input this tax credit information in to my taxes, my refund increased about $300.00.
3. Tax Preparation Fees
If you paid for tax preparation fees when you filed your prior years taxes, you may be able to write-off this amount as part of a Schedule A Itemization. For 2013, it was more beneficial for me to take the standard deduction. I spent on average $150-$200 to file my taxes in previous years because I do personal and business together. This year I discovered www.myfreetaxes.com and was able to file my taxes at no cost to me!
4. Lifetime Learning Credit
Whether you are in an Associates, Bachelors or Graduate program, the institution that you attend should supply you with a Form 1098-T: Tuition Statement. This can help to determine whether you qualify for the lifetime learning credit.
5. State of Hawaii - Refundable Food Credit
This credit is specific to the State of Hawaii Taxes. This is the first year that I noticed this tax credit when doing my taxes, and I'm happy that I did, because I was able to claim it for me and my son.
6. Charitable Donations
I try to do quarterly purges of clothes and items that we own and we donate to a local donation closet that serves those in need. I used www.itsdeductible.com to figure out the value of the items I donate and that is the amount that I claim on my taxes. In addition, I am able to claim all the donations I make to other smaller non-profit organizations as well as my Tithes to the church.
7. Car Registration Fees
Unfortunately for those of us who have their vehicles registered in the state of Hawaii we are not able to claim our car registration fees because they are determined according to the weight of the vehicle and not the value.
8. Medical Expenses -
If your out-of-pocket expenses for medical (including dental) is more than 10% of your adjusted gross income, you should consider itemizing your medical costs. 2013 was a pretty big medical year for us in regards to the amount that we had to pay that wasn't covered by my insurance. I started off the year at the hospital having gall bladder removal surgery, a couple months later I had to have a colposcopy done, then right after that I had my wisdom teeth pulled. And of course I started my prenatal appointments towards the last half of the year. And that was just my medical costs. We paid a lot for my son's medical and dental premium as well as having to pay for his tooth extraction, a spacer and a few fillings for cavities.
9. State of Hawaii - Car Seat
If you purchased a child safety seat, you can get a tax credit. Just make sure to keep your receipt because you have to submit it when you file your state taxes.
10. Miles Driven for medical purposes
I had always seen that I could claim the miles driven for medical purposes, like Dr's Visits, picking up prescriptions or trips to the Emergency Room. Even though I had a huge medical expense year in 2013, I did not track my mileage. Looking ahead at this year and the fact that I already have prenatal doctor appointments every 2 weeks and will have to travel from Waianae to Waipio for those appointments, plus giving birth at Moanalua Hospital and not to mention taking the baby to his well-baby appointments, I am making sure that for 2014 I am tracking my medical miles.
These are just a few of the things that I was able to claim for 2013 and ones that I can prepare to be able to claim for 2014. Knowing now, helps me to prepare and keep my documents in order so that come this time next year I will easily be able to file my taxes. Remember that I am not a tax professional and cannot offer any advice or information about the exact details of these credits and deductions.
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