Home insurance premiums maybe tax deductible. To qualify the insurance policy must be for home acquisition debt on a first or second home and the insurance contract must have been issued on or after January 1, 2007. Mortgage Insurance premiums are reported on for 1098 which is sent out by your lender.
Job search expenses that you incur while looking for employment related to your current occupation are deductible, even if you do not get a new job. These expenses include but are not limited to employment agency fees, resume preparation fees, travel and transportation fees.
Tax preparation fees incurred in the year you pay them are deductible. These fees include any amount that you pay to a CPA or tax preparation professional, tax software programs and tax publications, and the fee you pay for electronically filing your return.
First-Time Homebuyer credit applies to individuals who purchase a home after April 8, 2008 and before July 1, 2009. This credit only applies to your main home located in the United States and will either increase your refund amount dollar for dollar or reduce your tax bill.
Education Tax Credit options should be carefully considered when preparing your tax return. The Hope Credit applies for the first two years of post-secondary education at any accredited college or vocational school and can be worth up to 1,800 per student. The Lifetime Learning Credit applies to undergraduate, graduate and professional degree courses with a credit up to $2,000 per tax returns. There is also the Tuition and Fees deductions up to $4,000 per student and The Student Loan Interest deduction up to 2,500 per return.
Charitable contributions are deductible in the year that you paid them as long as you itemize your deductions. Be sure to obtain a written receipt from the charity of your choice when you are giving $250 or more. Make sure that the organization is recognized by the IRS as a qualified organization under 501(c) (3) regulations.
Medical Expenses are deductible if you spend more than 7.5% of your adjusted gross income on non reimbursed medical expenses which include co pays, prescriptions, and mileage to and from medial facilities.
The Real Property Tax deduction maybe claimed by individual who elects not to itemize and can claim an additional standard tax deduction for state and local real property taxes. The maximum amount is $500 for singles and $1,000 for a joint return.
Claiming Dependents who are full time students, live with you and whom you provide half of their support, and are between the ages of 19 and 24 will increase your refund when filing your tax return.
Educator Expenses are deductible up to $250 for classroom supplies that you purchased during the year. You may claim the deduction even if you do not itemize deductions. You must be an eligible educator who worked at least 900 hours during the school year.

KAZI Tax Tips for Individuals.

Home Insurance Premiums

According to the IRS you can treat mortgage insurance premiums that you paid during the year as home mortgage interest as long as the insurance is related to the home acquisition debt and the insurance contract was issued after December 31, 2006. If you paid $600 or more of mortgage interest including certain points and insurance premiums during the year, you should receive a form 1098 form your mortgage lender. If you have not received a form 1098 as of today, contact your mortgage lender to see if you qualify for this insurance premium deduction. You may also want to consult with your tax accountant to determine if you meet the adjusted gross income limitation requirements for this deduction.

Charity Contributions

When taking tax deductions for gifts to qualified charity organizations it is imperative that you follow the guidelines set forth by the IRS. Just to name a few, qualified organizations include churches, and other religious organizations, non profit schools and hospitals, The Salvation Army, The Red Cross, and Goodwill Industries. In order to deduct any charity contributions you must keep accurate records for cash contributions, non cash contributions, and out of pocket expenses when donating your time and or services. When giving cash contributions you must obtain a written receipt from the organization that includes the name of the organization, the date and location of the contribution, and a reasonable detailed description of the property given. You may also want to consult with your tax accountant for more information regarding charitable contributions.

Job Search Expenses
With the recent layoffs and job cuts across the country there are more and more individuals seeking employment than ever before. If you are currently accumulating expenses related to a job search in your “present” occupation, you maybe able to deduct some of these expenses when filing your tax return even if you do not get a job. According to the IRS these expenses include but are not limited to employment agency fees, resume preparation fees, legal fees, phone calls, and travel and transportation fees. Please keep in mind that you “cannot” deduct any expenses if you are (1) looking for a job for the first time, (2) looking for a job in a “new” occupation, and (3) there was a substantial time lapse between the ending of your last job and looking for a new one.

The following tax tips were provided by NABA member:

Marlon S. Green
MSG Accounting Services
PO Box 19063
Austin, TX 78760
(713) 298-1322
mgreen1@mail.com

10 Tax Tips for the Self-Employed

Technology and the ease of telecommunication have prompted more consultants, coaches, contractors and freelancers to take business matters into their own hands. Self-employment is no longer a means of making some extra money but a full-time career, and many such full-timers are punching their own time clocks and making excellent incomes.

The self-employed have unique tax concerns. Below are ten helpful tax tips to help lessen Uncle Sam's tax bite:

1. Keep very good records: Unlike a large company in which someone is hired to maintain records of all income and expenses, it is up to you to keep very good records, save all receipts and be able to support your deductions.

2. Office space: Whether you have a separate office facility or are using a portion of your basement or a converted den, you can deduct the percentage of your home used exclusively for business purposes. Take this percentage off of your mortgage or rent payments as well as your utilities. If you have a phone exclusively used for business, deduct those phone bills.

3. Don’t forget business expenses: Keep receipts and good records of business travel and other expenses including office supplies, postage and shipping costs, dues, subscriptions, and anything else business-related, including computer software for your business and upgrades to your system.

4. Deduct child care costs: There are allowable deductions for daycare, nanny care, babysitting and any other type of childcare provided while you are working. Take the deductions allowable.

5. Set up a retirement plan: You should consider setting up a self employed qualified retirement plan (i.e. SEP IRA) not only for tax purposes but for the same of saving money for your retirement years. If you wish to start with more than $2,000, you can opt for a Keogh plan, which allows you to put away more into tax-deferred savings for your retirement.

6. Employ family members: You can deduct medical expenses for your entire family by employing them legitimately.

7. Defer income if necessary: Being self-employed, you can alter your billing slightly to defer income if you see yourself heading into a higher tax bracket.

8. Get money back from FICA: Being self-employed, you pay both the employer and employee portions of Social Security tax. You can, however, deduct half of these payments on your 1040 form.

9. Increase expenses if necessary: Just as you can elect to defer income, if you see that your income is high, you can make many more year-end business purchases to add some tax deductions before December 31st.

10. Get the right help: Look for tax help from someone who is familiar with self- employment, since your needs will differ from those of a company.

Motley's Financial Services
Rosheila Motley, MSA
President & CEO
6106 Lakeview Ct., San Antonio, TX 78249
210.641.1173 phone

website: www.motleyfinlservices.vpweb.com

email address: rmotley@motleyfinlservices.vpweb.com