FREDERICK, Md (WDVM) — Tax season is right around the corner and you have just a little bit of time to get those write off’s in.
December 31 is the last day to donate to an IRS approved 501(c)(3) organization. There are a few things to remember heading into this new tax season:
- If you are giving money to an individual, it does not count as a tax write off.
- You can deduct 60% of your adjusted gross income and 30% from appreciated stock from your tax return.
There are also new additions to the 2019 tax returns.
“There’s a penalty for not having health insurance coverage the past two years, that has eliminated for 2019,” said Beverly Smith Moulden, owner of Beverly Smith Moulden CPA LLC. “If you’re divorced or legally separated in 2019 and on, no longer will the recipient of alimony have to claim them as income. and the person paying alimony, no linger has a deduction. “
There are also many tax deductions that are overlooked. Here are the top 10:
1. State sales taxes
2. Reinvested dividends
3. Out-of-pocket charitable contributions
4. Student loan interest paid by you or someone else
5. Moving expenses to take your first job
6. Child and Dependent Care Tax Credit
7. Earned Income Tax Credit (EITC)
8. State tax you paid last spring
9. Refinancing mortgage points
10. Jury pay paid to the employer