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A link has been posted to your Facebook feed. If you search the IRS website for tax forms, you’ll get over 900 results. Here are the ones you need to know. Whether you hire a professional or do it yourself, you need certain information and documentation to file your tax return. Here’s a list of items taxpayers commonly need to complete the job. Last year’s taxes, both your federal and state return, if applicable.
These aren’t strictly necessary, but they’re good refreshers of what you filed last year and the documents you used. Social Security numbers for yourself, your spouse and all dependents. Remember, in addition to children, dependents can include elderly parents and others. Employers must issue these by Jan. 31, so keep an eye on your mailboxes, both physical and electronic. Each of these ends with a different suffix, depending on the type of payment you received. For example, form 1099-MISC is for contract work.
Investment earnings show up on 1099-INT for interest, 1099-DIV for dividends and 1099-B for broker-handled transactions. The key to claiming deductions is documentation. Not only can it protect you if you’re ever audited, but it also can cut your tax bill by helping you remember what to claim. 200 more in your tax refund. You don’t have to itemize to benefit from some deductions.
These are listed directly on Form 1040 or, to a lesser extent, on Form 1040A. More deductions are available if you itemize expenses on Schedule A. Here’s a rundown of some popular tax deductions. You can deduct contributions to a traditional IRA or self-employed retirement account. Just be sure to stay within the contribution limits.
Students can claim a deduction for tuition and fees they paid, as well as for interest paid on a student loan. The IRS won’t accept your deduction claim without Form 1098-T, which shows your education transactions. Form 1098-E has details on your student loan. Medical costs could provide tax savings, but only if they total more than 7. If your mortgage payment includes an amount escrowed for property taxes, that will be included on the Form 1098 your lender sends you.
That document will also show how much home loan interest you can claim on Schedule A. To ensure your generosity pays off at tax time, keep your receipts for charitable donations. The IRS could disallow your claim if you don’t have verification. You can deduct various other taxes, including either state and local income or sales taxes. IRS provides tables with average amounts you can claim. The tax on a major purchase, however, can be added to the table amount, so keep those receipts.
Note that state income taxes paid should be on your W-2, but remember to add any state estimated taxes you paid during the year. But as with deductions, you need documentation to claim them. American Opportunity and Lifetime Learning credits. These education-related credits can save you quite a bit of money. As with the tuition and fees deduction, Form 1098-T is required to claim either.
1,000 per child dependent for the 2017 tax year. If you added to your family through adoption, you may be eligible for additional tax credits. If you bought Affordable Care Act coverage through the government’s marketplace, be on the lookout for Form 1095-A. It will help you claim the Premium Tax Credit or reconcile the amount you got in advance. IRA might allow you to claim this credit. But if you made federal estimated tax payments during the year, have this amount handy, too. This tax checklist covers preparation issues common to most filers, but taxes are different for everyone.