Business and Tax Lawyer Blog

Even with expert tax planning, Florida taxpayers should be aware of the top five tax deductions and credits most people miss when filing their returns. These include:

1. Tax preparation and financial planning fees: Buying tax books, tax software or visiting a tax preparer are all deductible expenses. Financial planning fees, but not commissions, are also deductible. These are itemized deductions.
2. Work safety equipment and apparel: If you work for a company that expects you to provide your own safety equipment, and you use these items solely at work, you can itemize the expenses as a deduction. This may be of particular interest to Jacksonville, Florida military personnel, who frequently pay out-of-pocket for gear they cannot use while off-duty.
3. Taking care of other people's children: These tax credits can include adoption, foster care or even hosting an exchange student. These credits can be complex, so it is important to consult a tax professional before taking one.
4. Savings bond interest: Savings bonds used to pay college tuition or those placed in a Covedell or 529 college savings plan will not be taxed on interest provided the individuals meet IRS income guidelines. Series EE and I bond interest gains do not have do not have to be claimed until the bonds are spent, disposed of or matured.
5. Local and state income tax: Forty three states allow residents to deduct state and local income taxes paid on necessities like a home purchase. Florida residents may use a standard formula if they cannot determine their exact expenditures for the year.

Along with proper tax planning, an understanding of available deductions and credits can help minimize your tax bill come April 15^th. To read even more tips, visit The 10 Most Obscure Tax Deductions You Should be Using this Year.Many tax deductions and credits have complicated requirements and require the assistance of a qualified tax professional. If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.