Top Tax Tips and Deductions for the 2018 Tax Season You Need to Know

Top Tax Tips and Deductions for the 2018 Tax Season You Need to Know

We’re right in the middle of tax season! While this time of the year can prove to be quite the headache, your McAllen CPA at Abigail Y. Murray, CPA, LLC. has got your back. The following top tax tips and deductions for the 2018 tax season are sure to help ease the burden this year and leave you with a little extra cash in your bank accounts.

And don’t forget that April 17th is just around the corner. You’ll want to get the guidance and help from a qualified McAllen CPA very soon!

Great Deductions to Know for 2018

Save some money on your taxes with:

  • Medical and Dental Deductions: If you’ve had a hefty amount of medical and dental care this year, you can deduct any unreimbursed expenses that exceed 7.5% of your Adjusted Gross Income (AGI).
  • Tax Preparation Fees: Why not reap the benefit of getting help and a deduction at the same time? On your current tax return that covers the year 2017, you can deduct any tax preparation costs that you incurred in 2017 when you filed for your previous year’s return. Be aware, however, that this ends in 2018; you won’t be able to use this deduction next year.
  • Mortgage Interest and Insurance Premiums: The interest you pay on your mortgage can be a deduction if it meets certain criteria. Mortgage insurance premiums can also qualify as a deduction for this tax year.
  • Home Equity Loans: Up to $100,000 of your home equity debt can be deducted this tax year.
  • Real Estate and Personal Property Taxes: Taxes levied on real estate and personal property can be deducted in most cases.
  • Sales Taxes: If you are looking to deduct sales taxes from your big purchases this year, you’ll need to use the Schedule A Instructions.
  • Moving Expenses: Are you new to the Rio Grande Valley? If you moved here to the McAllen metro area because of a new job, you may be able to deduct some of those moving expenses. This ends this year.
  • Alimony: Any alimony paid out to a former spouse may be deductible.
  • Home Office Expenses: You may be able to deduct some expenses from a home office if you use it regularly for work. You can find information on deducting home office expenses here.
  • Student Loan Interest: Valuable for college graduates, this deduction allows you to deduct up to $2,500 in student loan interest. Your lender will provide you with a 1098-E if you qualify.

Many of these deductions are going to be scaled back or completed eliminated next tax season, so it’s in your best interest to take full advantage of them before it’s too late.

A Few Tips to Make This Tax Season Easier for You

Preparation is key when it comes to filing, and you’ll want to abide by the following tips to ensure that you get to keep (and hopefully get back) more of your hard-earned money.

  1. Collect all information and documents. There is plenty of information and documentation that you can use to help your financial situation, including all the various 1099 forms, 1098 documents, records of self-employment expenses, records of alimony paid, charitable contributions made, job hunting expenses, as well as personal documents such as Social Security numbers for all household members, income information for dependent children, and much more. Contact our McAllen CPA to find out more about what forms you will need to properly file.
  2. Don’t forget about those credits. We spoke quite a bit about deductions earlier, but tax credits can prove to be just as valuable. There are plenty of tax credits that will still be available for this tax season, including those dealing with educational expenses, child care, dependents, energy-efficient home improvements, the Earned Income Tax Credit, and many more.
  3. File under the proper status. Many married couples automatically file jointly rather than see what their other options are. The married-filing-separately status may actually be more beneficial for them. Even single taxpayers may be able to qualify as head-of-household status if they are taking care of dependents including children or elderly parents.
  4. Open a traditional IRA. You still have until April 15th to open up a traditional IRA and contribute to it, which reduces your taxable income.
  5. Double check your tax return. You’ll want to go through every page and ensure that you filled out everything correctly. Take advantage of every deduction and credit that you can. You’ll want to be completely accurate so as not to draw the ire of the IRS.
  6. Hire a pro. Does it seem overwhelming to ensure you file everything correctly in order to get the best return on your taxes? It can be, but that’s why the professionals are here for you! Our McAllen CPA at Abigail Y. Murray knows far more about tax codes than the average Joe and will help you make the best decisions to lower your tax bill.
  7. Don’t Stress this Tax Season. Call up the McAllen Accounting Professionals at Abigail Y. Murray, CPA, LLC. for the Support You Need and Tax Expertise You Deserve.

    Abigail Y. Murray CPA isn’t just another accounting firm, and you’re not just another customer. Save yourself the headache this year and get an experienced accountant on your side.

    Our knowledge, experience, and up-to-date techniques mean we can make this tax season the best, not to mention the easiest, one for you yet. Who would’ve thought that was even possible when filing taxes!

    Contact us today at (959) 800-5600, and let’s make this tax season a great one for you.