I have asked this questions to many people who have applied for ITIN Number online. So you want to pay a lower amount of taxes this year? You are right; deductions are the cue. Are you certain you are availing all of these? We do not think so. Yes, you must be availing the common ones such as the interest on your mortgage, property taxes, sales taxes, healthcare expenses and the like. But what about the ones that are not so widely known? We are sure you are missing out on these. Add them on to Schedule A and your taxes will go down even more.
So let us take a look at these deductions which so many people are not even aware of.
Child and Dependant Care Credit
If you have a full-time job and you pay someone to look after your child during work hours, you can avail this credit. Doing so will let you deduct a significant amount directly from your tax. This amount depends on your gross income and the number of children you have. If your income is less than $15,000, you can deduct 35% of the childcare expenses. For greater income values, the percentage decreases.
You may have to meet a number of conditions, but take help of the pros and they will guide you. Moreover, you also have to fill out the 2441 form on which you will have to provide your name, address and social security number. If you are not eligible for this, then apply for an ITIN Number online through the W7 form. Your child must also have their social security number or an ITIN number.
One more thing: if you are divorced, only the custodial parent can take this credit.
Unreimbursed Employee Expenses
When an individual applies for an ITIN Number online, there are so many employees who have to spend from their pockets for a number of business expenses and these never get reimbursed. The IRS does allow you to deduct some of them if they are necessary for your job. A number of rules have to be followed for this which vary with every business. In the most general sense, an expense is deductible if it is commonly incurred in your field and is required to get your job done.
The most common of these expenses are business liability insurance, professional dues and expenses incurred while searching for a job.
Tax Preparation Fees
Are you hiring a pro to get your taxes done or get your ITIN Number online? Great idea, they will become much simpler and you will be over with them quickly. And there is one more benefit, you can deduct all the fees you pay to your chosen tax professional. This includes an accountant, a tax preparer and another related professional. If you are using a software, you can deduct these costs as well.
Please note that these expenses have to be deducted in the year in which they incur. As an example, when you do your taxes in the year 2015, you will be deducting the costs which incur in preparing for your taxes this year.
If you need more information about our accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.