Wednesday, October 2, 2013
As we enter the fourth and final quarter of 2013 here are some reminders that you should keep in mind from my series of Tax Tips at the MainStreet.com TAX CENTER and my tax season articles at TheStreet.com, with highlights -
“If you have already purchased an item you thought would qualify for the credit, you should verify that it actually does before you give your ‘stuff’ to your tax professional next year. Don't just include a copy of the bill for a purchase or a note that you spent $800 for a new hot water heater and expect your tax pro to waste his or her valuable time attempting to determine if the purchase qualifies for the credit.”
“Taxpayers - when you make a contribution to a church or charity make sure you receive and maintain all the necessary documentation, and make sure any receipt, statement or acknowledgement from the organization contains the statement: "No goods or services were provided in exchange for the donation."
If you made a contribution earlier this year but did not receive a proper and complete statement from the church or charity there is still time to go back to the organization and get a corrected acknowledgement.”
“So what should a Social Security or Railroad Retirement recipient do? Consult a tax professional before year end!”
“It is also a good idea to contact your tax professional in November – before the end of the year – even if none of the above events have occurred to discuss possible year-end tax planning moves.”
“One medical deduction that is often overlooked is the cost of traveling to and from doctors, dentists, therapists, hospitals, clinics and the like to get medical care. Your insurance company may cover the cost of the actual medical care, but it rarely if ever reimburses you for your transportation.
Keep a log of your medical travel during the year. This can be as simple as making a note of the location, round-trip miles and parking and tolls for each trip in a pocket datebook.”
Posted by Robert D Flach