Every individual who earns taxable income must fill out a federal and/or state income tax return by April 15. Individuals can increase tax refunds by claiming various items and deductions on their returns.
Child And Dependent Care Credit
This is a non-refundable deduction for unreimbursed childcare expenses. The Child and Dependent Care Credit varies between a range of 20 per cent to 35 per cent of £1,950 for each qualifying child or dependent under the age of 13.
Head of Household
A head of household is anyone running a house and paying more than 50 per cent of household expenses. The benefits of claiming this status is lower tax brackets in certain jurisdictions.
Investors can claim capital loss on tax filings. Capital losses are losses received from selling investments. If capital losses exceed capital gains, then the difference can be claimed up to £1,950.
Medical and Dental Expenses
Medical and dental expenses are deductible, such as prescription glasses or lenses, eye surgery, dentures or hearing aids. Funeral or burial costs, toiletries or over-the-counter medications are not deductible.
Business Use of Car
In order for business travel deduction, the car must be owned or leased. Gas, repairs and other expenses can be deductible, as well as a portion of the mileage.