MINNEAPOLIS - From the state of Minnesota to your federal tax return, there are all sorts of things to know and plenty of things that taxpayers don't want to miss.
"There's a number of deductions that people miss along the way," explained CPA Scott Kadrlik from the firm Meuwissen, Flygare, Kadrlik & Associates, P.A.
Kadrlik will help guide us through 11 tax tips to help you get the most out of your return.
- Energy Credits - New windows, doors, furnaces, if it's energy efficient and you have proof you paid for it in 2012, you can reduce your tax burden by claiming an energy tax credit on your federal return.
- Charitable Deductions - Don't forget about the tiny slips and receipts you've collected over the year. "You get a little receipt and it sits in your car all year, I actually collected mine the other day and stuck it in my tax file," smiled Kadrlik.
- Child Care Credit - If you pay somebody for your child care you could qualify for the credit. "The maximum would be 20 percent of $6,000 dollars or $1,200 dollars of credit, those are dollar for dollar reductions in your taxes," said Kadrlik.
- American Opportunities Credit - It allows for both a credit and reduction in taxes if your child is enrolled in school after high school. If the parents are providing support for that child, those parents are able to take the credit.
- Student Loan Interest - "Education credits are a big one," explained Kadrlik. "Make sure you're taking advantage of the credits for yourself and your children."
- K-12 Expenses (MN tax return) - The state offers a deduction for musical instruments, tutoring for your child as well as other school education costs.
- Long-Term Care Insurance Credit (MN tax return) - If you acquired insurance to protect yourself against the cost of nursing home care later in life, currently Minnesota offers a credit for a portion of what you're paying.
- IRA - Both a traditional and a Roth IRA are non-deductible, but are an opportunity for growth inside a retirement vehicle.
- 401k Contributions - It's a sort of tax savings on an annual basis. Consider your pre-tax contribution as an opportunity to earn more while not paying taxes.
- Mistakes - Check and double check your work to prevent making them.
- More Deductions and Credits - "Are there more deductions that I'm entitled to," questioned Kadrlik. "Don't just think taxes occur from January through April they actually occur all year."
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