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16
Feb

If you’re expecting a refund for your, then here are some quick simple tips to make your tax refund even bigger (Bear in mind that, you must itemize your taxes in order to be able to deduct charitable contributions):

#1. Deduct Job Search Expenses
Did you look for work during the past tax year? If so, you can deduct the expenses you incurred in your search for a new job on your 2009 Form 1040.

#2. Deduct 2010 Haitian Relief Donations on Your 2009 Return
The government has been generous so take advantage of it: you can claim 2009 deductions for Haiti relief donations made between Jan. 12 and Feb. 28, 2010, to help victims in areas affected by the Jan. 12 earthquake. This only applies if you have a record of it. For donations under $250, you need either a bank record (like a cancelled check or credit-card statement) or a receipt from the charity to prove your generosity. For donations of $250 or more, you must have a receipt from the charity. For donations made by phone or text message, the IRS says a service provider bill showing the name of the charity, the donation date, and the amount is sufficient proof.

#3. Did you help Any Struggling Relatives?
If so you could qualify for some tax break. This can range from being able to use favorable head-of-household filing status (if you’re single), to a $3,650 dependent exemption deduction, to a medical expense write-off.

#4. Making Work Pay and Government Retiree Credits

This is for those retired government employees who did not have Social Security taxes withheld from your wages when you worked. You are eligible for a one-time $250 credit. If your spouse qualifies, you can both claim and collect a $500 credit. To cash in, fill out the brand-new Schedule M (Making Work Pay and Government Retiree Credits) and file it with your 2009 return. Enter the credit amount on line 63 of Form 1040.

#5. Claim the Making Work Pay Credit, Even if You’re Self-Employed

Part of the Stimulus Act is President Obama’s signature Making Work Pay tax credit (MWPC). It can be as much as $400 for an unmarried worker or $800 for a married joint-filing couple. You may be unaware that the MWPC can be claimed by self-employed individuals as well as folks with “regular” jobs. In either case, you’ll need to fill out Schedule M (Making Work Pay and Government Retiree Credits) and file it with your 2009 Form 1040. Schedule M is a brand-new form, so read the instructions carefully, and enter your rightful MWPC amount on line 63 of Form 1040. (The MWPC is phased out if your income is too high.)

#6. Do You Use Your Credit Card To Pay Your Fed Tax Bills?
The IRS allows you to treat credit-card convenience fees paid to charge personal federal income tax bills (including estimated tax payments) as miscellaneous itemized deductions. However, you only get a write-off to the extent your total miscellaneous itemized deductions exceed 2% of adjusted gross income Fill out lines 21-27 of Schedule A (Itemized Deductions) to get this deduction.

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