Paying taxes earns you money

Thursday, February 24, 2011 - 12:00pm

Tax season is here, and some people could be missing out, on cashing in.

Liberty Taxes advisor, Maureen Parkhill says, "The biggest mistake people are making this time of year are people that itemize are not keeping their receipts and keeping up with possible deductions."

Keep those receipts and write off your sales taxes if the amount is greater than what you paid in for income taxes.

A credit that is often overlooked; the energy and appliance tax credit. If you made any energy efficient improvements to your home in 2010, you may be eligible for a tax credit up to $1500.

It's important to add up those itemized deductions this year. Nearly two out of three taxpayers take the standard deduction rather than itemizing deductions, and the IRS could owe you money.

For college students, Parkhill says, "There's the American opportunity credit that's for undergraduate school and theres the lifetime credit which is for post graduate school."

Also, for anyone with a 529 College Savings Plan, remember that computer and internet access count as "qualified education expenses for the 2010 tax year.


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