Additional Tax Saving Tips

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There's only a few more weeks left before your personal income tax return may be due. But before you finally file it to the IRS, you might consider some additional tax deductibles that may further reduce the tax amount you pay for 2010. Here are some options that you might wish to consider for some added tax reductions on your tax returns.

Disaster Loss Deductible

If you live in an area that was affected by the winter storms and that qualifies for federal disaster relief and insurance, you might be able to deduct the losses you might have incurred on your property as a result of the winter storms. This is possible only if you have not yet received any compensation in the form of insurance. But in order to claim for the loss, you might need to itemize the deductions as well as reduce the total amount of the loss by $100 and 10 percent of your gross adjusted income.

Making A Tax Deductible IRA Contribution

You may still be able to make a tax deductible contribution to your IRA until April 18 of this year, which is the due date for income tax returns. You may be able to contribute up to $5,000 which you can deduct from your tax return whether or not you itemize your deductions. You can deduct up to $6,000 if you are 50 years old and above. But if you have a 401(k) or any other retirement plan in your current job, you can only avail of this deduction if you belong to a certain income level which is stated in the IRS Publication 590.

Request For A Filing Extension

If you think that you can't meet the April 18 deadline for tax filing this year, you can request for a filing extension in order to avoid those late filing fees. You can ask for an automatic 6-month filing extension from the IRS by filing up Form 4868.