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Last Minute Deduction Suggestions for Individuals Completing Extended IRS Returns in October

So, you’ve extended your IRS tax return, and now the October 15th deadline is rapidly approaching.  We thought you might appreciate a few ideas to help wring a few extra dollars out of your return.

Let’s begin with charitable deductions.  It is important to note that the IRS asks the charity to provide details on any “perk” or goods or services you received for your donation.  For example, if you attended a charitable function that had a silent auction, and you picked up tickets to the San Diego Chargers for $50 with a face value of $125 you cannot write off the charitable deduction of $50.  The gift must exceed the face value of anything you received in return.

If you made any major purchases in 2014 and can document sales tax throughout the year you do have the option to take either your state and local sales taxes or your state and local income taxes – use whichever is greater.

Are you a high wage earner who changed jobs last year, or did you have more than one job?  Check the amount withheld on your W2-s for FICA.  The maximum FICA deduction in 2014 was 6.2% of $117,000 in income.  If your FICA deductions exceed $7,254.00 combined you may be eligible for a refund.  IRS Publication 17 will give you instructions on how to claim a refund.

If you have additional complications, offshore income or assets, or have sold a business or have business income that exceeds the amount you estimated back in April, we invite you to contact us for a free consultation at 866-631-3470.