Sources: 1) Internal Revenue Service 2) The Wall Street Journal, November 12, 2010, Internal Revenue Service

Don’t overlook potentially valuable deductions for these common situations: •Ifyouaresupplying housing or financial

supportforastrugglingrelative,youmaybe eligibletoclaimthemasdependentorqualify foramorefavorablehead-of-householdstatus.

•Youcandeduct medical billsthatexceed 7.5%ofyouradjustedgrossincome(AGI);onlyself-employedindividualswhodonotqualify foraworkplacehealthplancanclaimtheir insurancepremiums.

•Certaincollege expensesupto$4,000maycountasadeductionifyourincomeexcludes youfromthemoregenerouseducationtax creditsofferedfor2010.

•Moneyspent looking for a jobinyourcurrentfieldmayalsoqualifyifmiscellaneousdeductionstotalmorethan2%ofyourAGI.Ifthenew positionismorethan50milesaway,moving expensescanalsobededucted—evenifyoudon’titemize.

•Ifyouuse a part of your home exclusively for businessandcanproveitisyourprincipal officespace,youmayqualifytodeductaportionofyourhousingexpenses.

Fillingouttaxformscanbetimeconsuming,butit’simportanttoapproachthiscriticaltaskhead-on.Ifyou procrastinateandrushthroughtheprocessatthelastminute,youmaymisspotentialtaxbenefitsyoudeserve.Andthesooneryoufile,thesooneryoucanscorearefund!

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The average tax refund was $2,994 in 2010.1][

Leaving Money on the Table?Weighthebenefitofitemizingyourdeductions,suchasthoseforinterestpaymentsonahomemortgage,propertyorsalestaxes,andcharitabledonations,againstthestandarddeduction.

Source: Internal Revenue Service

Standard Deduction for 2010Singlefilers $5,700

Headofhousehold $8,400

Jointfilers $11,400

Tax Season? Tax Season? Are You Ready for

Two out of three taxpayers take the standard deduction, but seven in ten homeowners with a mortgage choose to itemize.2 ][

Get YourRefund Faster

According to the IRS, $164 million in refund checks were returned to the agency last year because of mailing address errors. Taxpayers whoe-fileandrequestadirectdepositoftheirrefundavoidpotential deliveryproblemsandreceivetheirmoneyatleastaweekbeforethosewhoaskforpapercheckssentbymail.

Ifyouplanaheadandfileearly,you’llalsoavoidthetemptationtopay extraforservicesthatofferyouan“instantrefund”—whichisreallya high-costloanbaseduponyourexpectedtaxreturn.

Choose a Pro or Software to HelpThetaxcodeiscomplicatedandchangesalmosteveryyear,soenlistingthehelpof ataxprofessionalcanpreventyoufrommissingoutonpotentialsavingsor incurringpenalties.

Ifyoudecidetofileonyourown,youcanoftenrelyonup-to-datecomputersoftwaretoguideyouthroughthenecessaryforms.Twooftheleadingprograms—Intuit’sTurboTaxandTaxCutbyH&RBlock—arerelativelyinexpensiveandeasy-to-use.

Ifyourespondedtogeneroushome-relatedtaxincentivesofferedin2009and2010,makesureyoufilethenecessaryformsand supportingdocumentationtocollectyourcredit.

Homebuyer Tax Credit:First-timebuyers,orotherswhohave notownedahomeinthepreviousthreeyears,maycollectup to$8,000iftheysignedacontractbyApril30andclosedby September30,2010.Move-upbuyerswhohaveownedtheir existinghomeforatleast5yearsandpurchasedanotherpropertyafterNovember6,2009canreceiveupto$6,500.Inbothcases,eligiblehomesmustbepurchasedfor$800,000orlessandasprincipalresidences(notrentalproperties).

Energy-Saving Home Improvements: Youcanreceivea creditof30%ofthecost,upto$1,500max,ifyoumadecertain energy-efficientupgradestoyourexistingprimaryresidence. Eligibleimprovementsmayincludeappliances,waterheaters,heatingandcoolingsystems,windowsanddoors,insulation androofingprojects,amongothers.

Tax credits reduce your tax liability dollar for dollar and can really add to your bottom line.

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