Be
sure to keep track of all potential deductions
during the year. It’s always better to have
too much information than not enough.
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Keep your deductible receipts and checks for at
least three years after you’ve filed them.
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Itemized
deductions are expenses deductible against your
Adjusted Gross Income. Examples of these expenses
include medical costs, real estate tax, mortgage
interest and charitable contributions.
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To
claim an exemption for an older relative, they
do not have to live with you, but you do have
to pay over one half of the person’s support
for that year, and their gross income must be
less than the exemption amount.
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If you buy tickets to a charitable event, you can deduct all but the fair market value of what you receive in return, for example a meal or entertainment.
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Don't forget to include your Social Security Number (and your dependent's) on your tax return. This number is required to claim several tax credits, such as the Child Tax Credit and ones for educational expenses and dependent care costs. Without the numbers, or the wrong ones, the IRS will disallow these tax breaks.
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