In 2009, 80,676 tax returns nationally included the adoption tax credit, according to the IRS.
Reduce your taxes with these under
Taxpayers who donate investment securities that have gone up in value can get a deduction for the value based on the donation date rather than pay capital gains tax, Jacobs said.
Qualified capital gains dividends are one example, he said. These gains, or the profit made when a security is sold at a higher price than it was bought at, may be taxed at smaller amounts than income or not at all for those in a 15 percent income tax bracket.
four years of tuition, compared to two.
"You can see if you sell first, you have to pay tax on the gain," he Prada Sunglasses said. "But if you donate directly, you can just chop out the capital gain."
One deduction is a newer "green" credit of up to $7,500 for taxpayers who bought plug in electric vehicles, according to the IRS.
Jacobs said those who purchased new cars can add the sales tax to the amount provided by IRS tables, which are based on income, and deduct the total if it exceeds what state income tax is paid.
Cars are also a little known source of deductions.
Jacobs said tax Burberry Fox Handbag
Tax credits, exemptions and deductions range from newer credits for electric cars to a little used, penalty free way to give a small but quick boost to your income.
Taxpayers who legally adopted a child in 2011 can get up to $13,360 toward related costs, Jacobs said. 2011 was the peak for the credit, and it drops in 2012, he said.
That's because most people add their capital gains onto their Burberry Wallet Outlet Online
"This is a great way to convert nondeductible credit card interest into a deduction," he said.
And should those at least age 59 1/2 need a boost in their income, they can take money out of their Individual Retirement Account, or IRA, without paying the standard penalty, Jacobs said. They still have to pay income taxes on it.
Child adoptions, which can involve traveling several times to a foreign country, also receive a little known federal tax credit.
Attention taxpayers: A few little known and often overlooked benefits of this tax filing season may reduce your taxes.
People overlook these ways of saving money for many reasons, and sometimes because they never think items could be tax free, Jacobs said.
"There have been a lot of opportunities for a while," said Jack Jacobs, a certified public accountant and partner with Jacobs and Jacobs Accountancy Corp. in Thousand Oaks and Ojai, Calif. "It's a matter of being able to spot them."
Deductions and exemptions reduce taxable income while credits are a dollar for dollar tax reduction, and more powerful.
income by habit, Jacobs said.
College tuition has generated a tax credit up to $2,500 but the law changed in 2010 to include related expenses such as books, according to the Internal Revenue Service. The credit also was expanded to Burberry Bag Amazon
"I'm sure many people miss it; it's easy to miss," Jacobs said. "They're surprised it's not being taxed."
There also is a deduction for donating securities to charities.
filers can deduct the interest on up to $100,000 of a home equity loan on their main residence and use it to pay off credit card debt.
"A lot of people overlook that the comparison (between the sales tax and state income tax)," he said. "This works best for people who pay very little state income tax."
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